The URL can be used to link to this page

2019 02 13 FACFINANCIAL ADVISORY COMMISSION AGENDA 1 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL STUDY SESSION ROOM 78-495 Calle Tampico, La Quinta REGULAR MEETING ON WEDNESDAY, FEBRUARY 13, 2019 AT 4:00 P.M. Roll Call: Commissioners: Batavick, Hunter, Lopez, Rosen, Turbow, Twohey and Chairperson Mills PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the Commission on any matter not listed on the agenda. Please complete a “Request to Speak” form and limit your comments to three minutes. The Financial Advisory Commission values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR 1.Approve Minutes Dated November 14, 2018 2.Approve Minutes Dated December 10, 2018 3.Receive and File Revenue and Expenditure Reports Dated November 30, 2018 4.Receive and File Revenue and Expenditure Reports Dated December 31, 2018 5.Receive and File Second Quarter 2018/19 Treasury Reports for October, November, And December 2018 Financial Advisory Commission agendas and staff reports are now available on the City’s web page: www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA 2 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING BUSINESS SESSION 1.Receive and File Comprehensive Annual Financial Report for Year Ending June 30, 2018 2.Receive and File the Measure G Compliance Report for Fiscal Year 2017/18 3.Receive and File Fiscal Year 2018/19 Mid-Year Budget Report 4.Approve Staff Recommendation to Establish a Public Agency Retirement Service Trust STUDY SESSION 1.Discuss the 2019 Community Workshop and 2019/20 Budget Process DEPARTMENTAL REPORTS 1.Measure G – Transaction & Use Tax – City Web Page Update 2.Third Quarter 2018 Sales Tax Update for the City of La Quinta 3.SilverRock Event Site – Verbal Update COMMISSIONERS’ ITEMS ADJOURNMENT The La Quinta Financial Advisory Commission will hold a special meeting on March 20, 2019 and the next regular quarterly meeting of the La Quinta Financial Advisory Commission will be held on May 15, 2019. Both meetings will be held at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253 and commencing at 4:00 p.m. DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta Financial Advisory Commission meeting was posted on the City’s website, near the entrance to the Council Chamber at 78 -495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and 51-321 Avenida Bermudas, on February 7, 2019. DATED: February 7, 2019 Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION AGENDA 3 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING Public Notices The La Quinta City Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk’s office at (760) 777-7092, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Financial Advisory Commission, arrangements should be made in advance by contacting the City Clerk’s office at (760) 777-7092. A one (1) week notice is required. If background material is to be presented to the Financial Advisory Commission during an FAC meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Management Assistant for distribution. It is requested that this take place prior to the beginning of the meeting. Any Writings or documents provided to a majority of the Financial Advisory Commission regarding any item(s) on the agenda will be made available for public inspection at the Community Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. FINANCIAL ADVISORY COMMISSION MINUTES 1 NOVEMBER 14, 2018 FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, NOVEMBER 14, 2018 CALL TO ORDER A regular meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. PRESENT: Commissioners Batavick, Lopez, Rosen, Turbow, Twohey, and Chairperson Mills ABSENT: None VACANCY: One PLEDGE OF ALLEGIANCE Commissioner Turbow led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None. CONFIRMATION OF AGENDA Finance Director Campos said Mr. Mark Johnson resigned from the Commission effective November 8, 2018. Finance Director Campos asked the Commission to take up the Departmental Reports portion of the agenda out of order and consider it first. The Commission concurred. taken out of order >>> DEPARTMENTAL REPORTS 1.SILVERROCK DEVELOPMENT – VERBAL UPDATE City Manager Spevacek said the City Council approved Amendment No. 3 to the Purchase, Sale, and Development Agreement (Amendment No. 3) between the City and SilverRock Development Company regarding SilverRock development; and provided a brief overview of the terms of Amendment No. 3, current land value, master site infrastructure needs, proposed improvement schedule, financing, ownership structure, and funding. 2.SECOND QUARTER 2018 (APRIL – JUNE 2018) SALES TAX UPDATE Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 NOVEMBER 14, 2018 Staff and Commission discussed the timing and adjustments for sales tax disbursements. 3.REQUEST FOR PROPOSALS FOR BANKING AND MERCHANT SERVICES –VERBAL UPDATE Finance Director Campos said the deadline for submittal was November 2, 2018 and have received four proposals. There were two additional banks that had initially intended to respond but did not receive the supplementary information, therefore we will be reissuing the request for proposal. The current responders will be allowed to keep their current responses or reissue a new proposal. 4.YEAR-END AUDITS – VERBAL UPDATE Finance Director Campos discussed the current audits that have been conducted so far for fiscal year 2017/18 which include the Citywide Final Audit, Measure A Audit, and the Annual Street Audit and reporting requirements. The next two upcoming audits include the Single Audit and the Housing Compliance audit. The Comprehensive Annual Financial Report (CAFR) will be issued by December 30th and will be available online and the Commission will be provided a printed copy. The auditors will be out in January to co-present the CAFR with an emphasis on any major projects, cash differences, and investments that occurred during the fiscal year. The next City council meeting will include separate year-end budget reports for the General Fund and Housing Authority funds and the General Fund report will be presented to the Commission. 5.ANNUAL COMMUNITY WORKSHOP AND BUDGET VIDEO – VERBAL UPDATE Finance Director Campos said the City offers several leadership development training opportunities. One such opportunity is the La Quinta Academy 1.0. City Departments pitch projects to participating Staff who collaborate as teams to complete them. One of this year’s projects included the creation of a budget video providing an overview of the City’s revenues and expenses and depicting the public services, capital improvement programs, parks, safety, events, affordable housing, etc. provided to the community; and played the video for the Commission. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None. CONSENT CALENDAR ITEMS 1.APPROVE MINUTES DATED AUGUST 8, 2018 2.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JUNE 30, 2018 3.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JULY 31, 2018 FINANCIAL ADVISORY COMMISSION MINUTES 3 NOVEMBER 14, 2018 4.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED AUGUST 31, 2018 5.RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED SEPTEMBER 30, 2018 6.RECEIVE AND FILE FIRST QUARTER 2018/19 TREASURER REPORTS FOR JULY, AUGUST, AND SEPTEMBER 2018 The Commission discussed revenues and expenses listed in Reports dated June 30 and July 31, 2018 with regards to debt service payments for the Redevelopment Agency remitted by the Department of Finance and Washington Street Apartments rehabilitation project, respectively; and First Quarter 2018/19 Treasurer Reports for July, August, and September 2018 regarding corporate notes and investments. Motion – A motion was made and seconded by Commissioners Batavick/Lopez to approve the Consent Calendar as recommended. Motion passed – (ayes 6, noes 0, absent 0, vacancy 1). BUSINESS SESSION 1.RECEIVE AND FILE FOURTH QUARTER 2017/18 TREASURY REPORTS FOR APRIL, MAY, AND JUNE 2018 WITH FISCAL YEAR-END SUMMARY Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Financial Services Analyst Hallick gave a presentation on an overview of investments and market updates. Motion – A motion was made and seconded by Commissioners Twohey/Lopez to receive and file the fourth quarter 2017/18 Treasury Reports. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). 2.RECEIVE AND FILE THE FISCAL YEAR 2018/19 FIRST QUARTER BUDGET REPORT Finance Director Campos presented the staff report, which is on file in the Finance Department. An overall update of the General Fund including revenue, expenditure adjustments, sales tax revenue, and pension obligations was discussed. Motion – A motion was made and seconded by Commissioners Lopez/Twohey to receive and file the fiscal year 2018/19 First Quarter Budget Report. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). FINANCIAL ADVISORY COMMISSION MINUTES 4 NOVEMBER 14, 2018 3.APPOINT TWO COMMISSIONERS TO FORMULATE AND APPROVE THE ANNUAL MEASURE G SALES TAX REPORT Finance Director Campos presented the staff report, which is on file in the Finance Department. She requested that two Commissioners work with Staff to formulate the annual Measure G sales tax oversight compliance report. Commissioners Rosen and Twohey expressed their willingness to participate in working with Staff to formulate the 2017/18 Measure G Sales Tax Oversight Compliance Report. Motion – A motion was made and seconded by Commissioners Twohey/Rosen to appoint Commissioners Rosen and Twohey to formulate and approve the Annual Measure G Sales Tax Report. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). STUDY SESSION – None. CORRESPONDENCE AND WRITTEN MATERIAL – None. COMMISSIONERS’ ITEMS – None. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Lopez/Twohey to adjourn this meeting at 5:54 p.m. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). Respectfully submitted, Claudia Martinez, Senior Accountant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES 1 DECEMBER 10, 2018 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION MINUTES MONDAY, DECEMBER 10, 2018 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 3:00 p.m. by Chairperson Mills. PRESENT: Commissioners: Batavick, Rosen, Turbow, Twohey, and Chairperson Mills ABSENT: Commissioner Lopez VACANCY: One PLEDGE OF ALLEGIANCE Commissioner Rosen led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED OCTOBER 31, 2018 Motion – A motion was made and seconded by Commissioners Batavick/Twohey to approve the Consent Calendar, as submitted. Motion passed: ayes 5, noes 0, absent 1 (Lopez), vacancy 1. BUSINESS SESSION – None STUDY SESSION 1. REVIEW THE SILVERROCK VENUE MASTER PLAN Facilities Director Howlett and City Consultant Chris Hermann, President/CEO of Hermann Design Group, presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the enhanced event site plan; event site parking; types of amenities and landscape for the site; potential funding sources and possible use of Measure G funds; project schedule; and process for approval of recommended additional amenities. CONSENT CALENDAR ITEM NO. 2 FINANCIAL ADVISORY COMMISSION MINUTES 2 DECEMBER 10, 2018 SPECIAL MEETING DEPARTMENTAL REPORTS 1. MEASURE G COMPLIANCE REPORT Finance Director Campos provided the Commission with a verbal update and handout summary of revenue and expenditures on approved projects. CORRESPONDENCE AND WRITTEN MATERIAL – None COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Twohey/Batavick to adjourn this meeting at 3:49 p.m. Motion passed: ayes 5, noes 0, absent 1 (Lopez), vacancy 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED NOVEMBER 30, 2018 RECOMMENDATION Receive and file revenue and expenditure report dated November 30, 2018. EXECUTIVE SUMMARY • The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for November 2018 (Attachment 1). • Revenue and expenditure reports are also reviewed by the City Council. FISCAL IMPACT - None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents revenue and expenditure budgets the Council adopted in June 2018 for fiscal year 2018/19. Current Total Budget – represents original adopted budgets plus any carryovers (typically associated with long-term Capital Improvement Projects (CIP) from the prior fiscal year) and any Council approved budget amendments from throughout the year. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/ (Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. 3 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. All funds are generally on target or under budget regarding expenditures. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment 1: Revenue and Expenditure Report for November 30, 2018 MTD YTD YTD Percent of Budget General Fund 3,164,104$ 8,525,907$ 16.30% All Funds 4,129,099$ 14,244,444$ 9.86% MTD YTD YTD Percent of Budget General Fund 2,561,975$ 9,684,448$ 16.52% Payroll - General Fund 873,544$ 3,953,792$ 39.04% All Funds 5,309,883$ 38,976,626$ 24.18% November Revenues November Expenditures General Fund Non-General Fund Measure G Sales Tax 1,109,078$ SilverRock Greens Fees 288,532$ Sales Tax 937,915$ CVAG(1)163,122$ Transient Occupancy (Hotel) Tax 515,046$ Gas Tax 137,705$ Cable Franchise Fees 159,094$ Surface Transportation Program Grant(2)89,386$ Communications Franchise Fees 74,051$ County Sales Tax (Measure A)75,466$ General Fund Non-General Fund Sheriff Contract (August/September)1,152,729$ Housing Construction(3)1,214,665$ Marketing and Tourism Promotions 90,783$ Capital Improvement Program-Construction(4)279,836$ Contract Legal Services 49,978$ SilverRock Maintenance 252,090$ Community Experiences (BrewLQ, Tree Lighting)37,723$ Capital Improvement Program-Design(5)138,723$ Parks Landscape Maintenance 35,851$ Museum Operations 50,880$ Top Five Revenue/Income Sources for November Top Five Expenditures/Outlays for November (1) Coachella Valley Association of Governments (CVAG) contribution to the Dune Palms Road capital improvement project (3) Housing construction expenses are from the Washington Street Apartments project, a low/moderate income housing project funded by bonds dedicated to housing uses. (5) CIP Design: Calle Tampico drainage improvements; Dune Palms bridge; SRR event site; SRR infrastructure Phase II (2) Grant money for the Dune Palms Bridge capital improvement project (4) CIP Construction: Quinterra and Adams Retention Basin; Pavement management plan (PMP) Zone 2 For Fiscal: 2018/19 Period Ending: 11/30/2018 1/2/2019 5:01:16 PM Page 1 of 2 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 8,525,9073,164,10452,297,400 52,297,400 -43,771,493 16.30 % 201 - GAS TAX FUND 590,155137,7051,965,500 1,965,500 -1,375,345 30.03 % 202 - LIBRARY & MUSEUM FUND 1,151,8205662,333,000 2,333,000 -1,181,180 49.37 % 203 - PUBLIC SAFETY FUND (MEASURE G)00200,000 200,000 -200,000 0.00 % 210 - FEDERAL ASSISTANCE FUND 0072,000 72,000 -72,000 0.00 % 212 - SLESA (COPS) FUND 65,4138,333100,100 100,100 -34,687 65.35 % 213 - JAG FUND 26826800 268 0.00 % 215 - LIGHTING & LANDSCAPING FUND 13,14601,586,100 1,586,100 -1,572,954 0.83 % 220 - QUIMBY FUND 00367,000 367,000 -367,000 0.00 % 221 - AB 939 - CALRECYCLE FUND 6,4383,67663,700 63,700 -57,262 10.11 % 223 - MEASURE A FUND 189,67775,466971,708 971,708 -782,031 19.52 % 225 - INFRASTRUCTURE FUND 00100100 -100 0.00 % 230 - CASp FUND, AB 1379 7,4121,9014,000 4,000 3,412 185.30 % 231 - SUCCESSOR AGCY PA 1 RORF 5,6797020,482,627 -20,476,948 0.03 % 235 - SO COAST AIR QUALITY FUND 0051,500 51,500 -51,500 0.00 % 237 - SUCCESSOR AGCY PA 1 ADMIN 00012,005 -12,005 0.00 % 241 - HOUSING AUTHORITY 309,40324,327315,000 543,000 -233,597 56.98 % 243 - RDA Low-Mod Housing Fund 008,000 18,000 -18,000 0.00 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)00010,000 -10,000 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)110,871030,000 170,000 -59,129 65.22 % 250 - TRANSPORTATION DIF FUND 209,87628,420369,000 369,000 -159,124 56.88 % 251 - PARKS & REC DIF FUND 176,12820,480508,200 508,200 -332,072 34.66 % 252 - CIVIC CENTER DIF FUND 60,7119,274110,000 110,000 -49,289 55.19 % 253 - LIBRARY DEVELOPMENT DIF 29,5843,44030,000 30,000 -416 98.61 % 254 - COMMUNITY CENTER DIF 11,0941,29015,400 15,400 -4,306 72.04 % 255 - STREET FACILITY DIF FUND 8,5581,16015,000 15,000 -6,442 57.05 % 256 - PARK FACILITY DIF FUND 3,4404004,000 4,000 -560 86.00 % 257 - FIRE PROTECTION DIF 27,9284,26340,000 40,000 -12,072 69.82 % 270 - ART IN PUBLIC PLACES FUND 37,3859,01988,500 88,500 -51,115 42.24 % 275 - LQ PUBLIC SAFETY OFFICER 002,100 2,100 -2,100 0.00 % 299 - INTEREST ALLOCATION FUND 708,70537,27300 708,705 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 3500671,600 671,600 -671,250 0.05 % 401 - CAPITAL IMPROVEMENT PROGRAMS 284,537252,50811,955,941 53,199,568 -52,915,031 0.53 % 501 - FACILITY & FLEET REPLACEMENT 227,9250923,700 923,700 -695,775 24.68 % 502 - INFORMATION TECHNOLOGY 278,5292,0201,189,800 1,484,800 -1,206,271 18.76 % 503 - PARK EQUIP & FACILITY FUND 163,7500675,000 675,000 -511,250 24.26 % 504 - INSURANCE FUND 230,6500923,600 923,600 -692,950 24.97 % 601 - SILVERROCK RESORT 788,645343,1974,092,800 4,092,800 -3,304,155 19.27 % 602 - SILVERROCK GOLF RESERVE 0070,000 70,000 -70,000 0.00 % 761 - CERBT OPEB TRUST 20,462000 20,462 0.00 % Report Total:4,129,099 14,244,44482,049,749 144,471,008 -130,226,564 9.86 % ATTACHMENT 1 For Fiscal: 2018/19 Period Ending: 11/30/2018 1/2/2019 4:59:22 PM Page 2 of 2 ExpenseSummary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 9,684,4482,561,97551,153,413 58,636,428 48,951,980 16.52 % 201 - GAS TAX FUND 423,62884,7341,959,900 2,010,829 1,587,201 21.07 % 202 - LIBRARY & MUSEUM FUND 496,946112,8751,628,200 1,628,200 1,131,254 30.52 % 210 - FEDERAL ASSISTANCE FUND 0072,000 72,000 72,000 0.00 % 212 - SLESA (COPS) FUND 00100,000 100,000 100,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 570,552174,5351,582,700 1,785,400 1,214,848 31.96 % 217 - DEVELOPMENT AGREEMENT 9,7341,59567,000 67,000 57,266 14.53 % 220 - QUIMBY FUND 003,956,000 7,298,488 7,298,488 0.00 % 221 - AB 939 - CALRECYCLE FUND 9,3223,89835,000 35,000 25,678 26.63 % 223 - MEASURE A FUND 3,6013,601961,708 4,733,403 4,729,802 0.08 % 225 - INFRASTRUCTURE FUND 00028,571 28,571 0.00 % 230 - CASp FUND, AB 1379 004,000 4,000 4,000 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 12,947,699009,339,728 -3,607,971 138.63 % 235 - SO COAST AIR QUALITY FUND 67232954,000 54,000 53,328 1.25 % 237 - SUCCESSOR AGCY PA 1 ADMIN 4,0001,300012,005 8,005 33.32 % 241 - HOUSING AUTHORITY 193,47147,780604,000 602,500 409,029 32.11 % 243 - RDA Low-Mod Housing Fund 00250,000 250,000 250,000 0.00 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)852,96372,05601,451,947 598,984 58.75 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)7,376,0241,214,66507,416,000 39,976 99.46 % 250 - TRANSPORTATION DIF FUND 00400,000 2,557,460 2,557,460 0.00 % 251 - PARKS & REC DIF FUND 0005,952 5,952 0.00 % 252 - CIVIC CENTER DIF FUND 00110,000 115,952 115,952 0.00 % 253 - LIBRARY DEVELOPMENT DIF 0030,000 35,952 35,952 0.00 % 254 - COMMUNITY CENTER DIF 000107,591 107,591 0.00 % 255 - STREET FACILITY DIF FUND 0015,000 20,952 20,952 0.00 % 256 - PARK FACILITY DIF FUND 004,000 9,952 9,952 0.00 % 257 - FIRE PROTECTION DIF 0040,000 45,952 45,952 0.00 % 270 - ART IN PUBLIC PLACES FUND 23,4285,607322,000 522,000 498,572 4.49 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 668,0380671,600 671,600 3,563 99.47 % 401 - CAPITAL IMPROVEMENT PROGRAMS 2,673,242461,84211,955,941 53,210,575 50,537,332 5.02 % 501 - FACILITY & FLEET REPLACEMENT 269,42072,026923,700 1,005,784 736,363 26.79 % 502 - INFORMATION TECHNOLOGY 285,33945,3921,090,700 1,574,200 1,288,862 18.13 % 503 - PARK EQUIP & FACILITY FUND 132,4474,650705,000 705,000 572,553 18.79 % 504 - INSURANCE FUND 730,9349,370921,100 918,500 187,566 79.58 % 601 - SILVERROCK RESORT 1,607,884431,6534,090,800 4,091,000 2,483,116 39.30 % 602 - SILVERROCK GOLF RESERVE 0050,200 50,200 50,200 0.00 % 760 - SUPPLEMENTAL PENSION PLAN 12,833000 -12,833 0.00 % Report Total:5,309,883 38,976,62683,757,962 161,174,121 122,197,496 24.18 % City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2018 RECOMMENDATION Receive and file revenue and expenditure report dated December 31, 2018. EXECUTIVE SUMMARY • The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for December 2018 (Attachment 1). • Revenue and expenditure reports are also reviewed by the City Council. FISCAL IMPACT - None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents revenue and expenditure budgets the Council adopted in June 2018 for fiscal year 2018/19. Current Total Budget – represents original adopted budgets plus any carryovers (typically associated with long-term Capital Improvement Projects (CIP) from the prior fiscal year) and any Council approved budget amendments from throughout the year. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/ (Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. 4 The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. All funds are generally on target or under budget regarding expenditures. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director Attachment 1: Revenue and Expenditure Report for December 30, 2018 MTD YTD YTD Percent of Budget General Fund 4,783,534$ 13,357,157$ 25.50% All Funds 8,892,553$ 24,478,376$ 16.66% MTD YTD YTD Percent of Budget General Fund 4,786,081$ 15,311,330$ 25.51% Payroll - General Fund 734,418$ 4,690,869$ 45.92% All Funds 7,514,088$ 47,829,300$ 28.82% December Revenues December Expenditures General Fund Non-General Fund Property Tax 2,000,250$ Transfers In - Capital Improvement (CIP) Fund(1)1,288,548$ Measure G Sales Tax 957,102$ Transfers In - Lighting & Landscape District 624,000$ Sales Tax 871,550$ SilverRock Greens Fees 280,468$ Transient Occupancy (Hotel) Tax 545,633$ Technology Support Internal Service Fund (3)270,225$ Building Plan Check Fees 47,051$ Insurance Internal Service Fund (3)230,650$ General Fund Non-General Fund Transfers Out(2)1,812,639$ Developer Reimbursements 400,000$ Sheriff Contract (September-October)1,106,595$ Transfers Out - Quimby to CIP 303,922$ Park Equipment Maintenance (4) 163,750$ SilverRock Maintenance 212,925$ Liability Insurance & Claims (4)114,650$ Capital Improvement Program (CIP)-Design(5)202,359$ Marketing and Tourism Promotions 64,364$ Transfers Out - Gas Tax to CIP 187,309$ Top Five Revenue/Income Sources for December Top Five Expenditures/Outlays for December (1) Transfers in to the Capital Improvement Fund are from General Fund, Quimby, Gas Tax, and Measure A sources. (3) Internal Service Funds are used to account for activites involved in rendering services to departments within the City; quarterly journal entries move revenue into these funds. (4) These charges in the General Fund represent quarterly contributions to the Internal Service Funds. (5) CIP Design: Calle Tampico drainage improvements; Dune Palms bridge; SRR event site; SRR infrastructure Phase II; Village Complete Streets. (2) Transfers out to Gas Tax Fund, Lighting and Landscape District, SilverRock, and the the Capital Improvement Plan (CIP) Fund as approved in the 2018/19 budget. ATTACHMENT 1 For Fiscal: 2018/19 Period Ending: 12/31/2018 2/1/2019 Page 1 of 2 Revenue Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 13,357,1574,783,53452,297,400 52,388,000 -39,030,843 25.50 % 201 - GAS TAX FUND 905,392315,5701,965,500 1,965,500 -1,060,108 46.06 % 202 - LIBRARY & MUSEUM FUND 1,149,2622892,333,000 2,333,000 -1,183,738 49.26 % 203 - PUBLIC SAFETY FUND (MEASURE G)200,067200,000200,000 200,000 67 100.03 % 210 - FEDERAL ASSISTANCE FUND 0072,000 66,226 -66,226 0.00 % 212 - SLESA (COPS) FUND 73,7678,333100,100 100,100 -26,333 73.69 % 213 - JAG FUND 268000 268 0.00 % 215 - LIGHTING & LANDSCAPING FUND 636,876624,0001,586,100 1,586,100 -949,224 40.15 % 217 - DEVELOPMENT AGREEMENT -223000 -223 0.00 % 219 - ASSET FORFEITURE 0000 0 0.00 % 220 - QUIMBY FUND -3,5290367,000 367,000 -370,529 0.96 % 221 - AB 939 - CALRECYCLE FUND 8,7242,74363,700 63,700 -54,976 13.70 % 223 - MEASURE A FUND 269,47180,209971,708 971,708 -702,237 27.73 % 224 - TUMF FUND -10000 -10 0.00 % 225 - INFRASTRUCTURE FUND -160100100 -116 15.68 % 230 - CASp FUND, AB 1379 8,3729564,000 4,000 4,372 209.31 % 231 - SUCCESSOR AGCY PA 1 RORF 19,1536,830020,482,627 -20,463,474 0.09 % 235 - SO COAST AIR QUALITY FUND 13,10213,36351,500 51,500 -38,398 25.44 % 237 - SUCCESSOR AGCY PA 1 ADMIN 00012,005 -12,005 0.00 % 241 - HOUSING AUTHORITY 327,79624,477315,000 543,000 -215,204 60.37 % 243 - RDA Low-Mod Housing Fund -1,20908,000 18,000 -19,209 6.71 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)00010,000 -10,000 0.00 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)110,871030,000 170,000 -59,129 65.22 % 250 - TRANSPORTATION DIF FUND 243,91836,946369,000 369,000 -125,082 66.10 % 251 - PARKS & REC DIF FUND 202,75226,624508,200 508,200 -305,448 39.90 % 252 - CIVIC CENTER DIF FUND 72,22711,516110,000 110,000 -37,773 65.66 % 253 - LIBRARY DEVELOPMENT DIF 34,0564,47230,000 30,000 4,056 113.52 % 254 - COMMUNITY CENTER DIF 12,7241,67715,400 15,400 -2,676 82.63 % 255 - STREET FACILITY DIF FUND 14,0322,83115,000 15,000 -968 93.55 % 256 - PARK FACILITY DIF FUND 3,9615204,000 4,000 -39 99.03 % 257 - FIRE PROTECTION DIF 33,2225,29440,000 40,000 -6,778 83.05 % 270 - ART IN PUBLIC PLACES FUND 37,38634488,500 88,500 -51,114 42.24 % 275 - LQ PUBLIC SAFETY OFFICER 1,9752,0002,100 2,100 -125 94.06 % 299 - INTEREST ALLOCATION FUND 860,811108,33100 860,811 0.00 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 3500671,600 671,600 -671,250 0.05 % 401 - CAPITAL IMPROVEMENT PROGRAMS 2,949,4721,399,35111,955,941 55,543,794 -52,594,321 5.31 % 501 - FACILITY & FLEET REPLACEMENT 453,841227,925923,700 923,700 -469,859 49.13 % 502 - INFORMATION TECHNOLOGY 549,548271,4581,189,800 1,484,800 -935,252 37.01 % 503 - PARK EQUIP & FACILITY FUND 325,389163,750675,000 675,000 -349,611 48.21 % 504 - INSURANCE FUND 460,054230,650923,600 923,600 -463,546 49.81 % 601 - SILVERROCK RESORT 1,221,482432,8374,092,800 4,092,800 -2,871,318 29.84 % 602 - SILVERROCK GOLF RESERVE -203070,000 70,000 -70,203 0.29 % 760 - SUPPLEMENTAL PENSION PLAN -100000 -100 0.00 % 761 - CERBT OPEB TRUST -73,815-94,27700 -73,815 0.00 % Report Total:8,892,553 24,478,37682,049,749 146,900,060 -122,421,683 16.66 % For Fiscal: 2018/19 Period Ending: 12/31/2018 2/1/2019 Page 2 of 2 Expense Summary Fiscal Activity Variance Favorable (Unfavorable)Fund Period Activity Current Total Budget Original Total Budget Percent Used 101 - GENERAL FUND 15,311,3304,786,08151,153,413 60,027,028 44,715,699 25.51 % 201 - GAS TAX FUND 886,742347,1591,959,900 2,010,829 1,124,087 44.10 % 202 - LIBRARY & MUSEUM FUND 519,53122,5851,628,200 1,628,200 1,108,669 31.91 % 210 - FEDERAL ASSISTANCE FUND 0072,000 66,226 66,226 0.00 % 212 - SLESA (COPS) FUND 00100,000 100,000 100,000 0.00 % 215 - LIGHTING & LANDSCAPING FUND 724,306153,7541,582,700 1,785,400 1,061,094 40.57 % 217 - DEVELOPMENT AGREEMENT 9,87914567,000 67,000 57,121 14.74 % 220 - QUIMBY FUND 384,694303,9223,956,000 5,748,488 5,363,794 6.69 % 221 - AB 939 - CALRECYCLE FUND 33,61424,29235,000 35,000 1,386 96.04 % 223 - MEASURE A FUND 304,73295,107961,708 4,733,403 4,428,671 6.44 % 225 - INFRASTRUCTURE FUND 00028,571 28,571 0.00 % 227 - State Homeland Security Programs (SHSP)3,0133,01300 -3,013 0.00 % 230 - CASp FUND, AB 1379 004,000 4,000 4,000 0.00 % 231 - SUCCESSOR AGCY PA 1 RORF 12,947,699009,339,728 -3,607,971 138.63 % 235 - SO COAST AIR QUALITY FUND 672054,000 54,000 53,328 1.25 % 237 - SUCCESSOR AGCY PA 1 ADMIN 4,0000012,005 8,005 33.32 % 241 - HOUSING AUTHORITY 231,71138,240604,000 602,500 370,789 38.46 % 243 - RDA Low-Mod Housing Fund 00250,000 250,000 250,000 0.00 % 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014)892,54439,58101,451,947 559,403 61.47 % 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016)7,376,024007,416,000 39,976 99.46 % 250 - TRANSPORTATION DIF FUND 410,157400,000400,000 2,557,460 2,147,304 16.04 % 251 - PARKS & REC DIF FUND 0002,405,952 2,405,952 0.00 % 252 - CIVIC CENTER DIF FUND 60,75830,938110,000 115,952 55,194 52.40 % 253 - LIBRARY DEVELOPMENT DIF 13,4676,82330,000 35,952 22,485 37.46 % 254 - COMMUNITY CENTER DIF 000107,591 107,591 0.00 % 255 - STREET FACILITY DIF FUND 16,2798,28815,000 20,952 4,673 77.70 % 256 - PARK FACILITY DIF FUND 3,9661,3234,000 9,952 5,986 39.85 % 257 - FIRE PROTECTION DIF 4,1492,07640,000 45,952 41,803 9.03 % 270 - ART IN PUBLIC PLACES FUND 47,48324,055322,000 722,000 674,517 6.58 % 310 - LQ FINANCE AUTHORITY DEBT SERVICE 668,0380671,600 671,600 3,563 99.47 % 401 - CAPITAL IMPROVEMENT PROGRAMS 3,049,385376,14211,955,941 55,554,801 52,505,416 5.49 % 501 - FACILITY & FLEET REPLACEMENT 331,47152,037923,700 1,005,784 674,313 32.96 % 502 - INFORMATION TECHNOLOGY 496,222210,8831,090,700 1,574,200 1,077,978 31.52 % 503 - PARK EQUIP & FACILITY FUND 171,99539,548705,000 705,000 533,005 24.40 % 504 - INSURANCE FUND 735,5204,586921,100 918,500 182,980 80.08 % 601 - SILVERROCK RESORT 2,126,884493,3094,090,800 4,091,000 1,964,116 51.99 % 602 - SILVERROCK GOLF RESERVE 50,20050,20050,200 50,200 0 100.00 % 760 - SUPPLEMENTAL PENSION PLAN 12,833000 -12,833 0.00 % Report Total:7,514,088 47,829,30083,757,962 165,953,173 118,123,874 28.82 % City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE SECOND QUARTER 2018/19 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2018 RECOMMENDATION Receive and file the second quarter fiscal year 2018/19 Treasury Reports for October, November, and December 2018. BACKGROUND/ANALYSIS Commentary and Summary of Significant Activity The total book value of the portfolio decreased $309,295 from $129.87 million at the end of September to $129.56 million at the end of December. The variance reflects revenue, expenditure, and investment activities during the quarter. The market continued to react to the political climate and economic news, and staff worked with the City’s broker to capitalize on market conditions. The Investment Type October November December Max Allowed Bank Accounts 1.54%2.58%3.28%85% Local Agency Investment Fund (LAIF) Housing 12.49%12.61%12.48%(1)(2) Local Agency Investment Fund (LAIF) City 37.41%36.20%34.28%(1) Federal Agency Coupons 17.25%17.41%17.23%30% Treasury Coupons 11.89%11.22%11.10%100% Certificates of Deposit (CD's)14.09%14.61%15.60%30% Corporate Notes 3.36%3.39%3.36%10% Money Market Pool Accounts-CAMP (new)0.77%0.78%1.55%20% Money Market with Fiscal Agent 0.00%0.00%0.00%(2) Managed Pool Accounts-OPEB Trust 1.19%1.20%1.12%(3) Total 100%100%100% (2) Funds held by fiscal agent and the LAIF Housing funds are governed by bond indentures and not subject to City Investment Policy (3) OPEB trust is a fiduciary account and not subject to City Investment Policy Portfolio Allocations Percent of Portfolio (1) LAIF is subject to maximum dollar amount not a percentage of the portfolio CONSENT CALENDAR ITEM NO 5. fiscal year annual effective rate of return is 1.88% as of December, a 13 bps increase over fiscal quarter one. Throughout the quarter, three CDs and three treasuries matured for a total PAR value of $4,228,000. This money, along with an additional $986,000, was used to purchase 19 new investments (two government agency bonds, two corporate notes, and 15 CDs). All maturities and purchases are individually listed in detail in the attached report. Other Notes Money market funds with the fiscal agent are bond proceeds subject to bond indentures, not the City’s investment policy. Successor Agency (SA) funds cannot be invested long-term; therefore, SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a “buy and hold” Investment Policy, unless it is fiscally advantageous to actively trade outside of maturity dates. For the short term, the Treasurer will invest in CAMP and LAIF as needed. Longer term investments may include Government Sponsored Enterprise (agencies) securities, U.S. Treasuries, Corporate Notes, and Negotiable Certificates of Deposits. All investments recognize both immediate and long-term cash flow needs, and there is sufficient liquidity in the portfolio to meet expenditure requirements for the next six months. ALTERNATIVES - None Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director/City Treasurer Attachment: 1. Treasurer’s Report for October 1 to December 31, 2018 Total Earnings Average Days to Maturity Effective Rate of Return YTD October 219,385.55$ 387 2.01% November 217,500.84$ 384 2.07% December 220,133.02$ 386 2.03% Quarter 657,019.41$ 386 2.04% -- GEM of the DESERT --· - Investments Bank Accounts Local Agency lnvstmnt Fund-Housing Local Agency Investment Fund-City Federal Agency Coupon Securities Treasury Coupon Securities Certificate of Deposits Corporate Notes Money Market Accounts Money Market with Fiscal Agent Managed Pool Accounts-OPEB Trust Investments Total Earnin!;J_!_ Current Year Average Daily Balance Effective Rate of Return Par Value 1,998,614.61 16,164,188.47 48,410,563.09 22,400,000.00 15,500,000.00 18,231,000.00 4,400,000.00 1,002,232.50 5,669.24 1,541,740.25 129,654,008.16 October 31 Month Ending 219,385.55 128,531,503.30 2.01% City of La Quinta Portfolio Management Portfolio Summary October 31, 2018 Market Value 1,998,614.61 16,119,719.09 48,318,062.14 21,850,901.50 15,044,740.00 17,917,691.14 4,316,141.00 1,002,232.50 5,669.24 1,541,740.25 128,115,511.47 Fiscal Year To Date 879,700.19 144,207,279.70 1.81% Book Value 1,998,614.61 16,164,188.47 48,410,563.09 22,324,500.00 15,380,290.00 18,231,000.00 4,349,010.00 1,002,232.50 5,669.24 1,541,740.25 129,407,808.16 % of Days to Portfolio Term Maturity 1.54 12.49 37.41 1 17.25 1,442 908 11.89 1,266 678 14.09 1,451 929 3.36 949 548 077 1 0.00 1.19 100.00% 636 387 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in comformity with the City Investment Policy. City of La Quinta YTM 365 Equiv. 0.000 2.144 2.144 1.912 1.573 2.250 1.869 0.000 0.000 0.000 1.966 As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank monthly statement, and First Empire monthly custodian reports to determine the fair market value of investments at month end. Karla Campos, Finance Director Reporting period 10/01/2018-10/31/2018 Run Date: 02/04/2019 -12:02 Portfolio CITY CP PM (PRF _PM1) 7.3.0 Report Ver. 7.3.6.1 ATTACHMENT 1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 3,300.00 3,300.0007/01/2016 3,300.00 1SYS1059 0.000 1First Empire Bank1060 12,500.00 12,500.0007/01/2016 12,500.00 1SYS1060 0.000 1La Quinta Palms Realty1062 237,137.75 237,137.7507/01/2016 237,137.75 1SYS1062 0.000 1Wells Fargo1057 1,745,676.86 1,745,676.8607/01/2016 1,745,676.86 14159282482 0.000 1,998,614.61 11,998,614.611,998,614.61728,295.32Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 16,164,188.47 16,164,188.47 2.14416,119,719.09 125-33-005 2.144 16,164,188.47 116,119,719.0916,164,188.4716,114,117.90Subtotal and Average 1 2.144 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 48,410,563.09 48,410,563.09 2.14448,318,062.14 198-33-434 2.144 48,410,563.09 148,318,062.1448,410,563.0948,326,551.88Subtotal and Average 1 2.144 Federal Agency Coupon Securities 253Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 989,640.00 7323133EGLC7 1.456 1,035Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 964,170.00 1,3923133EHWM1 1.913 231Federal Farm Credit Bank1141 500,000.00 494,750.00 06/20/20191.21005/31/2018 495,780.00 3853133EGFU4 2.224 554Federal Farm Credit Bank1142 500,000.00 491,750.00 05/08/20201.55005/31/2018 490,315.00 7083133EHJA2 2.427 1,769Federal Farm Credit Bank1158 250,000.00 247,275.00 09/05/20232.80010/15/2018 246,467.50 1,7863133EJYL7 3.041 909Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,405,725.00 1,8263130A7QZ1 1.423 725Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,424,400.00 1,4613130A9UQ2 1.375 680Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 976,150.00 1,0373130A66T9 1.741 1,580Federal Home Loan Bank1121 1,000,000.00 999,000.00 02/28/20232.37504/02/2018 992,820.00 1,7933130ADMF6 3.111 909Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.50004/28/2016 2,455,425.00 1,8263134G8Y37 1.400 1,244Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,925,460.00 1,8263134GBAE2 2.106 1,154Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 964,990.00 1,6373134GBXF4 2.012 1,364Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 964,030.00 1,8263134GBWG3 2.150 1,551Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 962,650.00 1,8263134GSCD5 2.550 1,575Federal Home Loan Mtg Corp1122 750,000.00 746,625.00 02/23/20232.75004/02/2018 736,485.00 1,7883134GSCQ6 2.849 165Federal Home Loan Mtg Corp1129 500,000.00 495,250.00 04/15/20191.12505/10/2018 496,800.00 3403137EADZ9 2.161 1,426Federal Home Loan Mtg Corp1156 400,000.00 398,800.00 09/27/20223.00010/15/2018 397,964.00 1,4433134GSWS0 3.081 452Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,972,380.00 1,0363135G0S53 1.700 315Federal National Mtg Assn1139 500,000.00 496,700.00 09/12/20191.75005/31/2018 495,900.00 4693135G0ZG1 2.275 274Federal National Mtg Assn1140 500,000.00 492,000.00 08/02/20190.87505/31/2018 493,350.00 4283135G0N33 2.269 Portfolio CITY CP Run Date: 02/04/2019 - 12:02 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 22,324,500.00 1,44221,850,901.5022,400,000.0022,032,724.19Subtotal and Average 908 1.912 Treasury Coupon Securities 972U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,772,050.00 1,808912828S27 1.125 516U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,450,100.00 1,107912828J84 1.602 409U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,461,925.00 1,000912828U73 1.513 1,095U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,903,440.00 1,679912828T67 1.903 14U.S. Treasury1103 500,000.00 498,840.00 11/15/20181.25011/09/2017 499,835.00 371912828M64 1.481 653U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 976,290.00 9369128282Q2 2.071 211U.S. Treasury1130 1,000,000.00 992,600.00 05/31/20191.50005/10/2018 993,950.00 386912828WL0 2.211 29U.S. Treasury1131 500,000.00 498,000.00 11/30/20181.25005/10/2018 499,630.00 204912828A34 1.974 546U.S. Treasury1138 500,000.00 488,250.00 04/30/20201.12505/31/2018 487,520.00 700912828VA5 2.387 15,380,290.00 1,26615,044,740.0015,500,000.0016,510,338.39Subtotal and Average 678 1.573 Certificate of Deposits 200First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,200.80 1,82631938QH72 1.751 385First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 237,516.00 853320165HX4 1.653 1,722First National Bank of America1147 245,000.00 245,000.00 07/20/20233.15007/20/2018 241,506.30 1,82632110YLK9 3.152 718First Tech Federal Credit Unio1124 245,000.00 245,000.00 10/19/20202.70004/18/2018 243,468.75 91533715LBJ8 2.623 1,187Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 239,502.20 1,46288413QBY3 2.502 1,320Allegiance Bank1143 245,000.00 245,000.00 06/13/20223.10006/13/2018 243,395.25 1,46101748DBE5 3.102 1,442Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 235,094.65 1,82601859BAA3 2.251 53Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,836.80 1,09602006LWX7 1.702 900Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 234,288.00 1,46102587DP85 2.252 1,397American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 230,076.00 1,82602587CFU9 2.402 1,602Aneca Federal Credit Union1119 245,000.00 245,000.00 03/22/20232.80003/22/2018 238,816.20 1,826034577AH9 2.802 1,454Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 230,618.40 1,82606740KLJ4 2.291 1,117Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 237,164.90 1,462080515CD9 2.101 1,211BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 232,178.40 1,82605580AGK4 2.201 805Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 233,503.20 1,28006610RAP4 1.804 949Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 234,760.80 1,46114042RGD7 2.252 587Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 241,449.95 1,827140420RX0 1.902 844Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 232,584.00 1,82720033APG5 1.702 1,622Citibank NA1123 245,000.00 245,000.00 04/11/20232.90004/11/2018 239,659.00 1,82617312QJ26 2.902 204City National Bank of Florida1132 240,000.00 240,000.00 05/24/20192.20005/24/2018 239,755.20 36517801DDT0 2.200 986Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 231,955.20 1,46115523RBJ4 1.851 216Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 246,926.16 1,46120786ABD6 1.501 Portfolio CITY CP Run Date: 02/04/2019 - 12:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,478CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 234,190.60 1,82422766ACB9 2.201 1,188Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 232,766.40 1,8262546722U1 2.251 446Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 236,930.40 916259744DS6 1.655 811Eagle Bank1146 245,000.00 245,000.00 01/20/20212.85007/20/2018 243,824.00 91527002YDV5 2.858 1,639EnerBank USA1125 240,000.00 240,000.00 04/28/20232.95004/30/2018 235,111.20 1,82429278TAY6 2.952 1,488Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 233,619.75 1,82629367QCP1 2.151 180Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 239,599.20 1,826294209AQ4 1.651 582EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 243,498.80 1,82729976DXX3 1.702 96Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 247,387.44 1,341307814DC4 1.252 1,275Farmers Insurance Group FCU1126 240,000.00 240,000.00 04/29/20222.80004/30/2018 236,263.20 1,46030960QAG2 2.802 782Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 239,889.30 1,09635638BAA9 2.052 200Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,198.40 1,827402194EB6 1.724 1,019General Electric Credit Union1150 240,000.00 240,000.00 08/16/20213.10008/15/2018 239,632.80 1,097369674AV8 3.100 1,272Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 233,157.60 1,82638148PJK4 2.401 620First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 235,382.40 1,096319141GT8 1.752 1,351HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 231,638.40 1,82640434YLE5 2.301 1,813Jefferson Financial CU1154 245,000.00 245,000.00 10/19/20233.35010/19/2018 243,118.40 1,826474067AQ8 3.352 558Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 240,999.15 915472376AC6 1.751 1,293Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 235,329.85 1,64250116CBE8 2.099 1,519Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 235,641.00 1,826499724AB8 2.401 1,811Marlin Business Bank1155 248,000.00 248,000.00 10/17/20233.30010/17/2018 245,534.88 1,82657116ARV2 3.302 614Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 235,452.00 1,09658740XZL7 1.752 120Metabank Sioux Falls1133 245,000.00 245,000.00 03/01/20192.05005/15/2018 244,853.00 29059101LDR5 2.057 589Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 243,193.76 1,827063615AVO 1.652 382Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 242,885.65 73261747MA92 1.800 41Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,823.92 1,279619165GE7 1.251 1,457Merrick Bank1163 248,000.00 248,000.00 10/28/20223.25010/30/2018 247,012.96 1,45959013J4K2 3.252 382Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 242,758.25 73261760AEP0 1.750 1,468Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 235,226.95 1,82662384RAC0 2.301 1,811Municipal Trust and Savings1160 245,000.00 245,000.00 10/17/20233.20010/17/2018 241,449.95 1,826625925AR3 3.202 1,090Northpointe Bank1127 240,000.00 240,000.00 10/26/20212.70004/26/2018 236,678.40 1,279666613GV0 2.703 1,733Bank of New England1151 249,000.00 249,000.00 07/31/20233.25007/31/2018 246,465.18 1,82606426KAN8 3.252 116New York Community Bank1137 245,000.00 245,000.00 02/25/20192.05005/25/2018 244,845.65 276649447RL5 2.050 1,175The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 230,287.20 1,645677721CN0 1.903 1,315PCSB Bank1149 245,000.00 245,000.00 06/08/20223.00006/08/2018 242,584.30 1,46169324MAD7 3.002 208Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 239,500.80 1,826704692AL6 1.801 Portfolio CITY CP Run Date: 02/04/2019 - 12:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 937PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 231,009.60 1,82674267GVG9 1.501 1,692RCB Bank1144 245,000.00 245,000.00 06/20/20233.15006/20/2018 241,707.20 1,82674934YAH4 3.152 753First Bank Richmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 238,892.15 1,251319267GC8 1.802 308Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,373.12 1,55376951DAL4 1.402 1,328Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 232,260.00 1,826795450A70 2.351 215Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 246,931.12 1,46183427LAX2 1.401 537Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 235,780.80 1,096857894TC3 1.588 1,309Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 232,840.80 1,82687164XQV1 2.401 911Towne Bank1128 240,000.00 240,000.00 04/30/20212.80004/30/2018 238,200.00 1,09689214PBL2 2.803 1,376Traditions Bank1148 245,000.00 245,000.00 08/08/20223.00006/08/2018 242,233.95 1,52289269CBX9 3.002 1,811UBS Bank USA1161 245,000.00 245,000.00 10/17/20233.35010/17/2018 243,120.85 1,82690348JEJ5 3.352 196Union BankNA1136 240,000.00 240,000.00 05/16/20192.20005/16/2018 239,772.00 36590521AQW1 2.200 866Unity Bank1120 245,000.00 245,000.00 03/16/20212.55003/16/2018 241,937.50 1,09691330ABN6 2.552 1,656University of Iowa Comm. CU1134 240,000.00 240,000.00 05/15/20233.05005/14/2018 235,994.40 1,82791435LAG2 3.052 173Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 239,616.00 1,82694768NJQ8 1.801 117Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,546.40 1,0969497483N5 1.201 592Wex Bank1145 245,000.00 245,000.00 06/15/20202.75006/13/2018 244,487.95 73392937CHG6 2.754 18,231,000.00 1,45117,917,691.1418,231,000.0017,668,548.39Subtotal and Average 929 2.250 Corporate Notes 1,007Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 478,265.00 1,514037833CC2 1.900 120Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,989,860.00 702478160BR4 1.305 462Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 493,675.00 745594918BV5 2.081 1,741Microsoft Corporation1157 400,000.00 378,360.00 08/08/20232.00010/15/2018 374,816.00 1,758594918BQ6 3.222 1,193Proctor and Gamble1159 500,000.00 487,950.00 02/06/20222.30010/15/2018 486,410.00 1,210742718DY2 3.071 351Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 493,115.00 71089236TDH5 1.681 4,349,010.00 9494,316,141.004,400,000.003,957,773.23Subtotal and Average 548 1.869 Money Market Accounts 1California Asset Management Pr1153 1,002,232.50 1,002,232.5009/26/2018 1,002,232.50 1SYS1153 0.000 1,002,232.50 11,002,232.501,002,232.501,000,363.59Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 5,669.24 5,669.2407/01/2016 5,669.24 1SYS1058 0.000 5,669.24 15,669.245,669.24651,050.16Subtotal and Average 1 0.000 Portfolio CITY CP Run Date: 02/04/2019 - 12:02 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Maturity Date Stated RateMarket Value October 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,541,740.25 1,541,740.2507/01/2018 1,541,740.25 1SYS1114 0.000 1,541,740.25 11,541,740.251,541,740.251,541,740.25Subtotal and Average 1 0.000 636128,531,503.30 129,654,008.16 387 1.966128,115,511.47 129,407,808.16Total and Average Portfolio CITY CP Run Date: 02/04/2019 - 12:02 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund October 1, 2018 - October 31, 2018 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 496,700.001139500,000.00 1.750FNMA 729.16 0.00 729.161.728101496,700.003135G0ZG1 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.34 0.00 2,833.341.6681012,000,000.003135G0S53 0.00 492,000.001140500,000.00 0.875FNMA 364.59 0.00 364.590.873101492,000.003135G0N33 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 2,125.00 0.00 2,125.002.5021011,000,000.003134GSCD5 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.67 0.00 1,791.672.1101011,000,000.003134GBWG3 0.00 2,500,000.0010542,500,000.00 1.500FHLMC 3,125.00 0.00 3,125.001.4721012,500,000.003134G8Y37 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.66 0.00 1,666.661.963101999,500.003134GBXF4 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.34 0.00 3,333.341.9721011,990,000.003134GBAE2 0.00 495,250.001129500,000.00 1.125FHLMC 468.75 0.00 468.751.114101495,250.003137EADZ9 0.00 746,625.001122750,000.00 2.750FHLMC 1,718.75 0.00 1,718.752.710101746,625.003134GSCQ6 0.00 398,800.001156400,000.00 3.000FHLMC 533.33 0.00 533.332.8711010.003134GSWS0 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.66 0.00 1,416.661.681101992,200.003133EHWM1 0.00 494,750.001141500,000.00 1.210FFCB 504.17 0.00 504.171.200101494,750.003133EGFU4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.068101992,600.003133EGLC7 0.00 491,750.001142500,000.00 1.550FFCB 645.84 0.00 645.841.546101491,750.003133EHJA2 0.00 247,275.001158250,000.00 2.800FFCB 311.11 0.00 311.112.7011010.003133EJYL7 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3291012,491,250.003130A7QZ1 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.16 0.00 1,354.161.600101996,800.003130A66T9 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.58 0.00 2,864.581.3491012,500,000.003130A9UQ2 0.00 999,000.0011211,000,000.00 2.375FHLB 1,979.17 0.00 1,979.172.333101999,000.003130ADMF6 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,927.54 0.00 2,927.541.3881012,483,250.00912828J84 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,107.10 0.00 2,107.101.2771011,942,800.00912828T67 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,911.55 0.00 2,911.551.3761012,490,750.00912828U73 0.00 985,800.0011171,000,000.00 1.500USTR 1,263.59 0.00 1,263.591.509101985,800.009128282Q2 0.00 488,250.001138500,000.00 1.125USTR 474.10 0.00 474.101.143101488,250.00912828VA5 0.00 992,600.0011301,000,000.00 1.500USTR 1,270.50 0.00 1,270.501.507101992,600.00912828WL0 0.00 498,000.001131500,000.00 1.250USTR 529.37 0.00 529.371.252101498,000.00912828A34 0.00 0.0010630.00 0.875USTR 836.75 0.00 -1,413.250.8721012,502,250.00912828L81 -2,250.00 498,840.001103500,000.00 1.250USTR 526.50 0.00 526.501.243101498,840.00912828M64 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,738.45 0.00 4,738.451.1161015,000,000.00912828S27 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:33 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest October 1, 2018 - October 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001043240,000.00 1.200WELLS 244.60 0.00 244.601.200101240,000.009497483N5 0.00 1,745,676.8610571,745,676.86WELLS 0.01 0.00 0.01101399,222.744159282482 0.00 240,000.001078240,000.00 2.400GLDMAN 489.21 0.00 489.212.400101240,000.0038148PJK4 0.00 240,000.001077240,000.00 2.250AMEX 458.63 0.00 458.632.250101240,000.0002587DP85 0.00 240,000.001042240,000.00 1.800WEB 366.90 0.00 366.901.800101240,000.0094768NJQ8 0.00 240,000.001067240,000.00 2.200BMW 448.44 0.00 448.442.200101240,000.0005580AGK4 0.00 240,000.001097240,000.00 2.300BARCLY 468.82 0.00 468.822.300101240,000.0006740KLJ4 0.00 245,000.001112245,000.00 2.5003RD 520.21 0.00 520.212.500101245,000.0088413QBY3 0.00 0.0010200.00 1.5001STMER 286.02 0.00 286.021.500101240,000.0032082BDF3 0.00 240,000.001016240,000.00 1.650EPHRAT 336.33 0.00 336.331.650101240,000.00294209AQ4 0.00 248,000.001163248,000.00 3.250MRRCK 22.08 0.00 22.083.2501010.0059013J4K2 0.00 240,000.001019240,000.00 1.7501STBUS 356.72 0.00 356.721.750101240,000.0031938QH72 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 240,000.001031240,000.00 1.800PEAPAC 366.91 0.00 366.911.800101240,000.00704692AL6 0.00 240,000.001128240,000.00 2.800TOWNE 570.74 0.00 570.742.800101240,000.0089214PBL2 0.00 248,000.001030248,000.00 1.250MORTN 263.29 0.00 263.291.250101248,000.00619165GE7 0.00 248,000.001018248,000.00 1.250FARMER 263.29 0.00 263.291.250101248,000.00307814DC4 0.00 248,000.001035248,000.00 1.400SOLOM 294.88 0.00 294.881.400101248,000.0083427LAX2 0.00 248,000.001011248,000.00 1.500CONNEC 315.95 0.00 315.951.500101248,000.0020786ABD6 0.00 248,000.001034248,000.00 1.400RVRW 294.88 0.00 294.881.400101248,000.0076951DAL4 0.00 248,000.001017248,000.00 1.700EVRBA 358.07 0.00 358.071.700101248,000.0029976DXX3 0.00 245,000.001006245,000.00 1.900CAPONE 395.36 0.00 395.361.900101245,000.00140420RX0 0.00 248,000.001002248,000.00 1.650MIDWES 347.54 0.00 347.541.650101248,000.00063615AVO 0.00 240,000.001001240,000.00 1.700ALLY 346.52 0.00 346.521.700101240,000.0002006LWX7 0.00 240,000.001009240,000.00 1.700CCBA 346.52 0.00 346.521.700101240,000.0020033APG5 0.00 240,000.001032240,000.00 1.500PRVTBA 305.75 0.00 305.751.500101240,000.0074267GVG9 0.00 48,410,563.09105548,410,563.09 2.144LAIF 98,481.57 0.00 98,481.572.39910149,617,395.4298-33-434 0.00 240,000.001066240,000.00 2.250DISCOV 458.63 0.00 458.632.250101240,000.002546722U1 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1081011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 326.14 0.00 326.141.600101240,000.00857894TC3 0.00 493,050.001079500,000.00 1.550APPL 645.84 0.00 645.841.542101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 489.20 0.00 489.202.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 374.55 0.00 374.551.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 458.63 0.00 458.632.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 479.01 0.00 479.012.350101240,000.00795450A70 0.00 240,000.001085240,000.00 1.850CNTRL 377.09 0.00 377.091.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 366.91 0.00 366.911.800101240,000.0006610RAP4 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:33 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest October 1, 2018 - October 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001087240,000.00 1.750MERCTL 356.71 0.00 356.711.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 468.82 0.00 468.822.300101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.29 0.00 387.291.900101240,000.00677721CN0 0.00 240,000.001091240,000.00 1.6501STFRM 336.33 0.00 336.331.650101240,000.00320165HX4 0.00 240,000.001093240,000.00 1.650DOUGLS 336.33 0.00 336.331.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 356.71 0.00 356.711.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 468.18 0.00 468.182.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 489.20 0.00 489.202.400101240,000.0002587CFU9 0.00 498,750.001098500,000.00 1.550TOYOTA 645.83 0.00 645.831.525101498,750.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 478.59 0.00 478.592.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 364.15 0.00 364.151.750101245,000.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 436.97 0.00 436.972.100101245,000.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 436.98 0.00 436.982.100101245,000.00080515CD9 0.00 245,000.001106245,000.00 2.200CRS1ST 457.78 0.00 457.782.200101245,000.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 447.38 0.00 447.382.150101245,000.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 364.14 0.00 364.141.750101245,000.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 374.55 0.00 374.551.800101245,000.0061747MA92 0.00 245,000.001110245,000.00 2.400KNOX 499.39 0.00 499.392.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 426.57 0.00 426.572.050101245,000.0035638BAA9 0.00 3,300.0010593,300.00CITYPC 0.00 0.00 0.001013,300.00SYS1059 0.00 1,541,740.2511141,541,740.25CALPRS 0.00 0.00 0.001011,541,740.25SYS1114 0.00 378,360.001157400,000.00 2.000MCRSFT 355.55 0.00 355.552.0181010.00594918BQ6 0.00 497,700.001118500,000.00 1.850MCRSFT 770.84 0.00 770.841.824101497,700.00594918BV5 0.00 245,000.001119245,000.00 2.800ANECA 582.63 0.00 582.632.800101245,000.00034577AH9 0.00 245,000.001120245,000.00 2.550UNITY 530.61 0.00 530.612.550101245,000.0091330ABN6 0.00 245,000.001123245,000.00 2.900CITINA 603.43 0.00 603.432.900101245,000.0017312QJ26 0.00 245,000.001124245,000.00 2.7001STTCH 561.82 0.00 561.822.700101245,000.0033715LBJ8 0.00 240,000.001125240,000.00 2.950ENER 601.32 0.00 601.322.950101240,000.0029278TAY6 0.00 240,000.001126240,000.00 2.800FARMIG 570.74 0.00 570.742.800101240,000.0030960QAG2 0.00 240,000.001127240,000.00 2.700NORPNT 550.35 0.00 550.352.700101240,000.00666613GV0 0.00 240,000.001132240,000.00 2.200CNBF 448.44 0.00 448.442.200101240,000.0017801DDT0 0.00 245,000.001133245,000.00 2.050METASF 426.57 0.00 426.572.050101245,000.0059101LDR5 0.00 240,000.001134240,000.00 3.050UOFICU 621.70 0.00 621.703.050101240,000.0091435LAG2 0.00 245,000.001137245,000.00 2.050NYCMBK 426.56 0.00 426.562.050101245,000.00649447RL5 0.00 240,000.001136240,000.00 2.200UNION 448.44 0.00 448.442.200101240,000.0090521AQW1 0.00 245,000.001143245,000.00 3.100ALLGNC 645.06 0.00 645.063.100101245,000.0001748DBE5 0.00 245,000.001144245,000.00 3.150RCB 655.46 0.00 655.463.150101245,000.0074934YAH4 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:33 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 4 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest October 1, 2018 - October 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 245,000.001145245,000.00 2.750WEX 572.23 0.00 572.232.750101245,000.0092937CHG6 0.00 245,000.001146245,000.00 2.850EAGLE 593.03 0.00 593.032.850101245,000.0027002YDV5 0.00 245,000.001147245,000.00 3.1501STNBA 655.46 0.00 655.463.150101245,000.0032110YLK9 0.00 245,000.001148245,000.00 3.000TRAD 624.24 0.00 624.243.000101245,000.0089269CBX9 0.00 245,000.001149245,000.00 3.000PCSB 624.24 0.00 624.243.000101245,000.0069324MAD7 0.00 240,000.001150240,000.00 3.100GECRUN 631.89 0.00 631.893.100101240,000.00369674AV8 0.00 249,000.001151249,000.00 3.250NWENGL 687.30 0.00 687.303.250101249,000.0006426KAN8 0.00 1,002,232.5011531,002,232.50CAMP 1,931.21 0.00 1,931.212.2731011,000,301.29SYS1153 0.00 245,000.001154245,000.00 3.350JEFF 292.32 0.00 292.323.3501010.00474067AQ8 0.00 248,000.001155248,000.00 3.300MARBUS 313.91 0.00 313.913.3001010.0057116ARV2 0.00 487,950.001159500,000.00 2.300P&G 511.11 0.00 511.112.2491010.00742718DY2 0.00 245,000.001160245,000.00 3.200MUNTRS 300.71 0.00 300.713.2001010.00625925AR3 0.00 245,000.001161245,000.00 3.350UBS 314.81 0.00 314.813.3501010.0090348JEJ5 0.00 113,234,512.70Subtotal 112,988,312.70 1.953 184,954.060.00187,204.06112,845,624.70 -2,250.00 Fund: 1st Empire Securities Cash Bal 12,500.00106012,500.00EMPIRE 100.03 0.00 100.032.96510252,810.58SYS1060 0.00 12,500.00Subtotal 12,500.00 2.965 100.030.00100.0352,810.58 0.00 Fund: Fiscal Agent 5,669.2410585,669.24USBANK 1,493.54 0.00 1,493.542.701231672,562.86SYS1058 0.00 5,669.24Subtotal 5,669.24 2.701 1,493.540.001,493.54672,562.86 0.00 Fund: Housing Authority : WSA and LQ 237,137.751062237,137.75LQPR 0.00 0.00 0.00241242,792.85SYS1062 0.00 237,137.75Subtotal 237,137.75 0.000.000.00242,792.85 0.00 Fund: SA Low/Mod Bond Fund 16,164,188.47111316,164,188.47 2.144LAIF 32,837.92 0.00 32,837.922.39924916,053,317.9225-33-005 0.00 16,164,188.47Subtotal 16,164,188.47 2.399 32,837.920.0032,837.9216,053,317.92 0.00 129,654,008.16Total 129,407,808.16 2.010 219,385.550.00221,635.55129,867,108.91 -2,250.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:33 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 3,300.00 3,300.0007/01/2016 3,300.00 1SYS1059 0.000 1First Empire Bank1060 500,000.00 500,000.0007/01/2016 500,000.00 1SYS1060 0.000 1La Quinta Palms Realty1062 242,547.25 242,547.2507/01/2016 242,547.25 1SYS1062 0.000 1Wells Fargo1057 2,565,606.45 2,565,606.4507/01/2016 2,565,606.45 14159282482 0.000 3,311,453.70 13,311,453.703,311,453.702,184,307.86Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 16,164,188.47 16,164,188.47 2.20816,119,719.09 125-33-005 2.208 16,164,188.47 116,119,719.0916,164,188.4716,164,188.47Subtotal and Average 1 2.208 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 46,410,563.09 46,410,563.09 2.20846,318,062.14 198-33-434 2.208 46,410,563.09 146,318,062.1446,410,563.0946,943,896.42Subtotal and Average 1 2.208 Federal Agency Coupon Securities 223Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 990,750.00 7323133EGLC7 1.456 1,005Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 967,620.00 1,3923133EHWM1 1.913 201Federal Farm Credit Bank1141 500,000.00 494,750.00 06/20/20191.21005/31/2018 496,215.00 3853133EGFU4 2.224 524Federal Farm Credit Bank1142 500,000.00 491,750.00 05/08/20201.55005/31/2018 491,435.00 7083133EHJA2 2.427 1,739Federal Farm Credit Bank1158 250,000.00 247,275.00 09/05/20232.80010/15/2018 247,435.00 1,7863133EJYL7 3.041 879Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,413,150.00 1,8263130A7QZ1 1.423 695Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,431,150.00 1,4613130A9UQ2 1.375 650Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 978,490.00 1,0373130A66T9 1.741 1,550Federal Home Loan Bank1121 1,000,000.00 999,000.00 02/28/20232.37504/02/2018 995,670.00 1,7933130ADMF6 3.111 879Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.50004/28/2016 2,462,275.00 1,8263134G8Y37 1.400 1,214Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,941,640.00 1,8263134GBAE2 2.106 1,124Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 973,440.00 1,6373134GBXF4 2.012 1,334Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 969,370.00 1,8263134GBWG3 2.150 1,521Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 979,860.00 1,8263134GSCD5 2.550 1,545Federal Home Loan Mtg Corp1122 750,000.00 746,625.00 02/23/20232.75004/02/2018 740,722.50 1,7883134GSCQ6 2.849 135Federal Home Loan Mtg Corp1129 500,000.00 495,250.00 04/15/20191.12505/10/2018 497,525.00 3403137EADZ9 2.161 1,396Federal Home Loan Mtg Corp1156 400,000.00 398,800.00 09/27/20223.00010/15/2018 399,952.00 1,4433134GSWS0 3.081 422Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,974,700.00 1,0363135G0S53 1.700 285Federal National Mtg Assn1139 500,000.00 496,700.00 09/12/20191.75005/31/2018 496,305.00 4693135G0ZG1 2.275 244Federal National Mtg Assn1140 500,000.00 492,000.00 08/02/20190.87505/31/2018 494,080.00 4283135G0N33 2.269 Portfolio CITY CP Run Date: 02/04/2019 - 11:46 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 22,324,500.00 1,44221,941,784.5022,400,000.0022,324,500.00Subtotal and Average 878 1.912 Treasury Coupon Securities 942U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,791,400.00 1,808912828S27 1.125 486U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,453,700.00 1,107912828J84 1.602 379U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,464,950.00 1,000912828U73 1.513 1,065U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,911,960.00 1,679912828T67 1.903 623U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 978,320.00 9369128282Q2 2.071 181U.S. Treasury1130 1,000,000.00 992,600.00 05/31/20191.50005/10/2018 994,810.00 386912828WL0 2.211 516U.S. Treasury1138 500,000.00 488,250.00 04/30/20201.12505/31/2018 488,495.00 700912828VA5 2.387 14,383,450.00 1,33414,083,635.0014,500,000.0015,097,642.00Subtotal and Average 694 1.562 Certificate of Deposits 170First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,251.20 1,82631938QH72 1.751 355First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 237,492.00 853320165HX4 1.653 1,692First National Bank of America1147 245,000.00 245,000.00 07/20/20233.15007/20/2018 241,026.10 1,82632110YLK9 3.152 688First Tech Federal Credit Unio1124 245,000.00 245,000.00 10/19/20202.70004/18/2018 243,334.00 91533715LBJ8 2.623 1,157Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 239,181.25 1,46288413QBY3 2.502 1,290Allegiance Bank1143 245,000.00 245,000.00 06/13/20223.10006/13/2018 242,870.95 1,46101748DBE5 3.102 1,412Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 234,636.50 1,82601859BAA3 2.251 23Ally Bank Midvale1001 240,000.00 240,000.00 12/24/20181.70012/24/2015 239,930.40 1,09602006LWX7 1.702 870Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 234,144.00 1,46102587DP85 2.252 1,367American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 229,744.80 1,82602587CFU9 2.402 1,572Aneca Federal Credit Union1119 245,000.00 245,000.00 03/22/20232.80003/22/2018 238,296.80 1,826034577AH9 2.802 1,424Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 230,150.40 1,82606740KLJ4 2.291 1,087Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 236,954.20 1,462080515CD9 2.101 1,181BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 231,902.40 1,82605580AGK4 2.201 775Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 233,448.00 1,28006610RAP4 1.804 919Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 234,578.40 1,46114042RGD7 2.252 557Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 241,381.35 1,827140420RX0 1.902 814Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 232,540.80 1,82720033APG5 1.702 1,592Citibank NA1123 245,000.00 245,000.00 04/11/20232.90004/11/2018 239,134.70 1,82617312QJ26 2.902 174City National Bank of Florida1132 240,000.00 240,000.00 05/24/20192.20005/24/2018 239,716.80 36517801DDT0 2.200 956Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 231,832.80 1,46115523RBJ4 1.851 1,810Commercial Bank1162 248,000.00 248,000.00 11/15/20233.40011/15/2018 246,087.92 1,82620143PDV9 3.402 186Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 246,998.08 1,46120786ABD6 1.501 1,448CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 233,707.95 1,82422766ACB9 2.201 Portfolio CITY CP Run Date: 02/04/2019 - 11:46 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,158Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 232,497.60 1,8262546722U1 2.251 416Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 236,877.60 916259744DS6 1.655 781Eagle Bank1146 245,000.00 245,000.00 01/20/20212.85007/20/2018 243,566.75 91527002YDV5 2.858 1,609EnerBank USA1125 240,000.00 240,000.00 04/28/20232.95004/30/2018 234,600.00 1,82429278TAY6 2.952 1,458Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 233,139.55 1,82629367QCP1 2.151 150Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 239,606.40 1,826294209AQ4 1.651 552EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 243,476.48 1,82729976DXX3 1.702 66Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 247,573.44 1,341307814DC4 1.252 1,245Farmers Insurance Group FCU1126 240,000.00 240,000.00 04/29/20222.80004/30/2018 235,826.40 1,46030960QAG2 2.802 752Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 239,793.75 1,09635638BAA9 2.052 170Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,253.60 1,827402194EB6 1.724 989General Electric Credit Union1150 240,000.00 240,000.00 08/16/20213.10008/15/2018 239,263.20 1,097369674AV8 3.100 1,242Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 232,802.40 1,82638148PJK4 2.401 590First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 235,365.60 1,096319141GT8 1.752 1,321HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 231,249.60 1,82640434YLE5 2.301 1,783Jefferson Financial CU1154 245,000.00 245,000.00 10/19/20233.35010/19/2018 242,697.00 1,826474067AQ8 3.352 528Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 240,937.90 915472376AC6 1.751 1,263Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 235,008.90 1,64250116CBE8 2.099 1,489Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 235,131.40 1,826499724AB8 2.401 1,781Marlin Business Bank1155 248,000.00 248,000.00 10/17/20233.30010/17/2018 245,115.76 1,82657116ARV2 3.302 584Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 235,432.80 1,09658740XZL7 1.752 90Metabank Sioux Falls1133 245,000.00 245,000.00 03/01/20192.05005/15/2018 244,830.95 29059101LDR5 2.057 559Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 243,183.84 1,827063615AVO 1.652 352Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 242,834.20 73261747MA92 1.800 11Morton Community1030 248,000.00 248,000.00 12/12/20181.25006/12/2015 247,947.92 1,279619165GE7 1.251 1,427Merrick Bank1163 248,000.00 248,000.00 10/28/20223.25010/30/2018 246,340.88 1,45959013J4K2 3.252 352Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 242,719.05 73261760AEP0 1.750 1,438Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 234,736.95 1,82662384RAC0 2.301 1,781Municipal Trust and Savings1160 245,000.00 245,000.00 10/17/20233.20010/17/2018 241,055.50 1,826625925AR3 3.202 1,823Numerica Credit Union1164 248,000.00 248,000.00 11/28/20233.55011/28/2018 247,724.72 1,82667054NAN3 3.552 1,060Northpointe Bank1127 240,000.00 240,000.00 10/26/20212.70004/26/2018 236,359.20 1,279666613GV0 2.703 1,703Bank of New England1151 249,000.00 249,000.00 07/31/20233.25007/31/2018 245,969.67 1,82606426KAN8 3.252 86New York Community Bank1137 245,000.00 245,000.00 02/25/20192.05005/25/2018 244,830.95 276649447RL5 2.050 1,145The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 230,088.00 1,645677721CN0 1.903 1,285PCSB Bank1149 245,000.00 245,000.00 06/08/20223.00006/08/2018 242,074.70 1,46169324MAD7 3.002 178Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 239,503.20 1,826704692AL6 1.801 Portfolio CITY CP Run Date: 02/04/2019 - 11:46 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 907PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 230,944.80 1,82674267GVG9 1.501 1,662RCB Bank1144 245,000.00 245,000.00 06/20/20233.15006/20/2018 241,197.60 1,82674934YAH4 3.152 723First Bank Richmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 238,877.45 1,251319267GC8 1.802 278Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,445.04 1,55376951DAL4 1.402 1,298Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 231,880.80 1,826795450A70 2.351 185Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 247,005.52 1,46183427LAX2 1.401 507Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 235,759.20 1,096857894TC3 1.588 1,279Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 232,464.00 1,82687164XQV1 2.401 881Towne Bank1128 240,000.00 240,000.00 04/30/20212.80004/30/2018 237,921.60 1,09689214PBL2 2.803 1,346Traditions Bank1148 245,000.00 245,000.00 08/08/20223.00006/08/2018 241,680.25 1,52289269CBX9 3.002 1,781UBS Bank USA1161 245,000.00 245,000.00 10/17/20233.35010/17/2018 242,699.45 1,82690348JEJ5 3.352 166Union BankNA1136 240,000.00 240,000.00 05/16/20192.20005/16/2018 239,738.40 36590521AQW1 2.200 836Unity Bank1120 245,000.00 245,000.00 03/16/20212.55003/16/2018 241,719.45 1,09691330ABN6 2.552 1,626University of Iowa Comm. CU1134 240,000.00 240,000.00 05/15/20233.05005/14/2018 235,480.80 1,82791435LAG2 3.052 143Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 239,620.80 1,82694768NJQ8 1.801 87Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,611.20 1,0969497483N5 1.201 562Wex Bank1145 245,000.00 245,000.00 06/15/20202.75006/13/2018 244,265.00 73392937CHG6 2.754 18,727,000.00 1,46118,395,069.0218,727,000.0018,379,800.00Subtotal and Average 923 2.282 Corporate Notes 977Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 479,000.00 1,514037833CC2 1.900 90Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,991,840.00 702478160BR4 1.305 432Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 494,015.00 745594918BV5 2.081 1,711Microsoft Corporation1157 400,000.00 378,360.00 08/08/20232.00010/15/2018 376,144.00 1,758594918BQ6 3.222 1,163Proctor and Gamble1159 500,000.00 487,950.00 02/06/20222.30010/15/2018 488,310.00 1,210742718DY2 3.071 321Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 494,140.00 71089236TDH5 1.681 4,349,010.00 9494,323,449.004,400,000.004,349,010.00Subtotal and Average 518 1.869 Money Market Accounts 1California Asset Management Pr1153 1,004,175.23 1,004,175.2309/26/2018 1,004,175.23 1SYS1153 0.000 1,004,175.23 11,004,175.231,004,175.231,002,297.26Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 5,676.44 5,676.4407/01/2016 5,676.44 1SYS1058 0.000 5,676.44 15,676.445,676.445,669.48Subtotal and Average 1 0.000 Portfolio CITY CP Run Date: 02/04/2019 - 11:46 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Maturity Date Stated RateMarket Value November 30, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,541,740.25 1,541,740.2507/01/2018 1,541,740.25 1SYS1114 0.000 1,541,740.25 11,541,740.251,541,740.251,541,740.25Subtotal and Average 1 0.000 647127,993,051.74 128,464,797.18 384 1.982127,044,764.37 128,221,757.18Total and Average Portfolio CITY CP Run Date: 02/04/2019 - 11:46 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund November 1, 2018 - November 30, 2018 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 496,700.001139500,000.00 1.750FNMA 729.17 0.00 729.171.786101496,700.003135G0ZG1 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.33 0.00 2,833.331.7241012,000,000.003135G0S53 0.00 492,000.001140500,000.00 0.875FNMA 364.58 0.00 364.580.902101492,000.003135G0N33 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 2,125.00 0.00 2,125.002.5851011,000,000.003134GSCD5 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.67 0.00 1,791.672.1801011,000,000.003134GBWG3 0.00 2,500,000.0010542,500,000.00 1.500FHLMC 3,125.00 0.00 3,125.001.5211012,500,000.003134G8Y37 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.67 0.00 1,666.672.029101999,500.003134GBXF4 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.33 0.00 3,333.332.0381011,990,000.003134GBAE2 0.00 495,250.001129500,000.00 1.125FHLMC 468.75 0.00 468.751.152101495,250.003137EADZ9 0.00 746,625.001122750,000.00 2.750FHLMC 1,718.75 0.00 1,718.752.801101746,625.003134GSCQ6 0.00 398,800.001156400,000.00 3.000FHLMC 1,000.00 0.00 1,000.003.051101398,800.003134GSWS0 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.67 0.00 1,416.671.737101992,200.003133EHWM1 0.00 494,750.001141500,000.00 1.210FFCB 504.16 0.00 504.161.240101494,750.003133EGFU4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.103101992,600.003133EGLC7 0.00 491,750.001142500,000.00 1.550FFCB 645.83 0.00 645.831.598101491,750.003133EHJA2 0.00 247,275.001158250,000.00 2.800FFCB 583.33 0.00 583.332.870101247,275.003133EJYL7 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3741012,491,250.003130A7QZ1 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.17 0.00 1,354.171.653101996,800.003130A66T9 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.58 0.00 2,864.581.3941012,500,000.003130A9UQ2 0.00 999,000.0011211,000,000.00 2.375FHLB 1,979.17 0.00 1,979.172.410101999,000.003130ADMF6 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,833.10 0.00 2,833.101.3881012,483,250.00912828J84 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,071.82 0.00 2,071.821.2971011,942,800.00912828T67 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,817.62 0.00 2,817.621.3761012,490,750.00912828U73 0.00 985,800.0011171,000,000.00 1.500USTR 1,222.82 0.00 1,222.821.509101985,800.009128282Q2 0.00 488,250.001138500,000.00 1.125USTR 466.16 0.00 466.161.162101488,250.00912828VA5 0.00 992,600.0011301,000,000.00 1.500USTR 1,229.73 0.00 1,229.731.507101992,600.00912828WL0 0.00 0.0011310.00 1.250USTR 495.22 0.00 2,495.221.252101498,000.00912828A34 2,000.00 0.0011030.00 1.250USTR 237.77 0.00 1,397.771.243101498,840.00912828M64 1,160.00 5,000,000.0010455,000,000.00 1.125USTR 4,585.60 0.00 4,585.601.1161015,000,000.00912828S27 0.00 240,000.001043240,000.00 1.200WELLS 236.71 0.00 236.711.200101240,000.009497483N5 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:35 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2018 - November 30, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 2,565,606.4510572,565,606.45WELLS 0.01 0.00 0.011011,745,676.864159282482 0.00 240,000.001078240,000.00 2.400GLDMAN 473.42 0.00 473.422.400101240,000.0038148PJK4 0.00 240,000.001077240,000.00 2.250AMEX 443.83 0.00 443.832.250101240,000.0002587DP85 0.00 240,000.001042240,000.00 1.800WEB 355.07 0.00 355.071.800101240,000.0094768NJQ8 0.00 240,000.001067240,000.00 2.200BMW 433.97 0.00 433.972.200101240,000.0005580AGK4 0.00 240,000.001097240,000.00 2.300BARCLY 453.70 0.00 453.702.300101240,000.0006740KLJ4 0.00 245,000.001112245,000.00 2.5003RD 503.42 0.00 503.422.500101245,000.0088413QBY3 0.00 240,000.001016240,000.00 1.650EPHRAT 325.48 0.00 325.481.650101240,000.00294209AQ4 0.00 248,000.001163248,000.00 3.250MRRCK 662.47 0.00 662.473.250101248,000.0059013J4K2 0.00 240,000.001019240,000.00 1.7501STBUS 345.20 0.00 345.201.750101240,000.0031938QH72 0.00 240,000.001024240,000.00 1.750GCB 345.21 0.00 345.211.750101240,000.00402194EB6 0.00 240,000.001031240,000.00 1.800PEAPAC 355.07 0.00 355.071.800101240,000.00704692AL6 0.00 240,000.001128240,000.00 2.800TOWNE 552.33 0.00 552.332.800101240,000.0089214PBL2 0.00 248,000.001030248,000.00 1.250MORTN 254.80 0.00 254.801.250101248,000.00619165GE7 0.00 248,000.001018248,000.00 1.250FARMER 254.80 0.00 254.801.250101248,000.00307814DC4 0.00 248,000.001035248,000.00 1.400SOLOM 285.37 0.00 285.371.400101248,000.0083427LAX2 0.00 248,000.001011248,000.00 1.500CONNEC 305.75 0.00 305.751.500101248,000.0020786ABD6 0.00 248,000.001034248,000.00 1.400RVRW 285.37 0.00 285.371.400101248,000.0076951DAL4 0.00 248,000.001017248,000.00 1.700EVRBA 346.52 0.00 346.521.700101248,000.0029976DXX3 0.00 245,000.001006245,000.00 1.900CAPONE 382.60 0.00 382.601.900101245,000.00140420RX0 0.00 248,000.001002248,000.00 1.650MIDWES 336.33 0.00 336.331.650101248,000.00063615AVO 0.00 240,000.001001240,000.00 1.700ALLY 335.34 0.00 335.341.700101240,000.0002006LWX7 0.00 240,000.001009240,000.00 1.700CCBA 335.35 0.00 335.351.700101240,000.0020033APG5 0.00 240,000.001032240,000.00 1.500PRVTBA 295.89 0.00 295.891.500101240,000.0074267GVG9 0.00 46,410,563.09105546,410,563.09 2.208LAIF 92,578.01 0.00 92,578.012.39910148,410,563.0998-33-434 0.00 240,000.001066240,000.00 2.250DISCOV 443.84 0.00 443.842.250101240,000.002546722U1 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1451011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 315.61 0.00 315.611.600101240,000.00857894TC3 0.00 493,050.001079500,000.00 1.550APPL 645.83 0.00 645.831.594101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 473.43 0.00 473.432.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 362.47 0.00 362.471.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 443.84 0.00 443.842.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 463.56 0.00 463.562.350101240,000.00795450A70 0.00 240,000.001085240,000.00 1.850CNTRL 364.93 0.00 364.931.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 355.07 0.00 355.071.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 345.21 0.00 345.211.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 453.70 0.00 453.702.300101240,000.0040434YLE5 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:35 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2018 - November 30, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001089240,000.00 1.900OHVAL 374.80 0.00 374.801.900101240,000.00677721CN0 0.00 240,000.001091240,000.00 1.6501STFRM 325.48 0.00 325.481.650101240,000.00320165HX4 0.00 240,000.001093240,000.00 1.650DOUGLS 325.48 0.00 325.481.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 345.21 0.00 345.211.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 453.08 0.00 453.082.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 473.43 0.00 473.432.400101240,000.0002587CFU9 0.00 498,750.001098500,000.00 1.550TOYOTA 645.83 0.00 645.831.575101498,750.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 463.15 0.00 463.152.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 352.39 0.00 352.391.750101245,000.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 422.88 0.00 422.882.100101245,000.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 422.87 0.00 422.872.100101245,000.00080515CD9 0.00 245,000.001106245,000.00 2.200CRS1ST 443.01 0.00 443.012.200101245,000.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 432.94 0.00 432.942.150101245,000.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 352.40 0.00 352.401.750101245,000.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 362.46 0.00 362.461.800101245,000.0061747MA92 0.00 245,000.001110245,000.00 2.400KNOX 483.29 0.00 483.292.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 412.80 0.00 412.802.050101245,000.0035638BAA9 0.00 3,300.0010593,300.00CITYPC 0.00 0.00 0.001013,300.00SYS1059 0.00 1,541,740.2511141,541,740.25CALPRS 0.00 0.00 0.001011,541,740.25SYS1114 0.00 378,360.001157400,000.00 2.000MCRSFT 666.67 0.00 666.672.144101378,360.00594918BQ6 0.00 497,700.001118500,000.00 1.850MCRSFT 770.83 0.00 770.831.884101497,700.00594918BV5 0.00 245,000.001119245,000.00 2.800ANECA 563.84 0.00 563.842.800101245,000.00034577AH9 0.00 245,000.001120245,000.00 2.550UNITY 513.50 0.00 513.502.550101245,000.0091330ABN6 0.00 245,000.001123245,000.00 2.900CITINA 583.98 0.00 583.982.900101245,000.0017312QJ26 0.00 245,000.001124245,000.00 2.7001STTCH 543.70 0.00 543.702.700101245,000.0033715LBJ8 0.00 240,000.001125240,000.00 2.950ENER 581.91 0.00 581.912.950101240,000.0029278TAY6 0.00 240,000.001126240,000.00 2.800FARMIG 552.33 0.00 552.332.800101240,000.0030960QAG2 0.00 240,000.001127240,000.00 2.700NORPNT 532.61 0.00 532.612.700101240,000.00666613GV0 0.00 240,000.001132240,000.00 2.200CNBF 433.97 0.00 433.972.200101240,000.0017801DDT0 0.00 245,000.001133245,000.00 2.050METASF 412.80 0.00 412.802.050101245,000.0059101LDR5 0.00 240,000.001134240,000.00 3.050UOFICU 601.64 0.00 601.643.050101240,000.0091435LAG2 0.00 245,000.001137245,000.00 2.050NYCMBK 412.81 0.00 412.812.050101245,000.00649447RL5 0.00 240,000.001136240,000.00 2.200UNION 433.97 0.00 433.972.200101240,000.0090521AQW1 0.00 245,000.001143245,000.00 3.100ALLGNC 624.25 0.00 624.253.100101245,000.0001748DBE5 0.00 245,000.001144245,000.00 3.150RCB 634.32 0.00 634.323.150101245,000.0074934YAH4 0.00 245,000.001145245,000.00 2.750WEX 553.76 0.00 553.762.750101245,000.0092937CHG6 0.00 245,000.001146245,000.00 2.850EAGLE 573.91 0.00 573.912.850101245,000.0027002YDV5 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:35 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 4 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest November 1, 2018 - November 30, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 245,000.001147245,000.00 3.1501STNBA 634.31 0.00 634.313.150101245,000.0032110YLK9 0.00 245,000.001148245,000.00 3.000TRAD 604.11 0.00 604.113.000101245,000.0089269CBX9 0.00 245,000.001149245,000.00 3.000PCSB 604.11 0.00 604.113.000101245,000.0069324MAD7 0.00 240,000.001150240,000.00 3.100GECRUN 611.50 0.00 611.503.100101240,000.00369674AV8 0.00 249,000.001151249,000.00 3.250NWENGL 665.14 0.00 665.143.250101249,000.0006426KAN8 0.00 1,004,175.2311531,004,175.23CAMP 1,942.73 0.00 1,942.732.3581011,002,232.50SYS1153 0.00 245,000.001154245,000.00 3.350JEFF 674.59 0.00 674.593.350101245,000.00474067AQ8 0.00 248,000.001155248,000.00 3.300MARBUS 672.65 0.00 672.653.300101248,000.0057116ARV2 0.00 487,950.001159500,000.00 2.300P&G 958.33 0.00 958.332.390101487,950.00742718DY2 0.00 245,000.001160245,000.00 3.200MUNTRS 644.39 0.00 644.393.200101245,000.00625925AR3 0.00 245,000.001161245,000.00 3.350UBS 674.59 0.00 674.593.350101245,000.0090348JEJ5 0.00 248,000.001162248,000.00 3.400COMMBK 346.52 0.00 346.523.4001010.0020143PDV9 0.00 248,000.001164248,000.00 3.550NMRCA 72.36 0.00 72.363.5501010.0067054NAN3 0.00 111,552,385.02Subtotal 111,309,345.02 2.026 185,548.640.00182,388.64112,988,312.70 3,160.00 Fund: 1st Empire Securities Cash Bal 500,000.001060500,000.00EMPIRE 67.62 0.00 67.620.59510212,500.00SYS1060 0.00 500,000.00Subtotal 500,000.00 0.595 67.620.0067.6212,500.00 0.00 Fund: Fiscal Agent 5,676.4410585,676.44USBANK 7.20 0.00 7.201.5452315,669.24SYS1058 0.00 5,676.44Subtotal 5,676.44 1.545 7.200.007.205,669.24 0.00 Fund: Housing Authority : WSA and LQ 242,547.251062242,547.25LQPR 0.00 0.00 0.00241237,137.75SYS1062 0.00 242,547.25Subtotal 242,547.25 0.000.000.00237,137.75 0.00 Fund: SA Low/Mod Bond Fund 16,164,188.47111316,164,188.47 2.208LAIF 31,877.38 0.00 31,877.382.39924916,164,188.4725-33-005 0.00 16,164,188.47Subtotal 16,164,188.47 2.399 31,877.380.0031,877.3816,164,188.47 0.00 128,464,797.18Total 128,221,757.18 2.068 217,500.840.00214,340.84129,407,808.16 3,160.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:35 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Bank Accounts 1City Petty Cash1059 3,300.00 3,300.0007/01/2016 3,300.00 1SYS1059 0.000 1First Empire Bank1060 0.00 0.0007/01/2016 0.00 1SYS1060 0.000 1La Quinta Palms Realty1062 258,978.62 258,978.6207/01/2016 258,978.62 1SYS1062 0.000 1Wells Fargo1057 3,989,633.85 3,989,633.8507/01/2016 3,989,633.85 14159282482 0.000 4,251,912.47 14,251,912.474,251,912.473,300,679.19Subtotal and Average 1 0.000 Local Agency Invstmnt Fund-Housing 1Local Agency Inv Fund1113 16,164,188.47 16,164,188.47 2.29116,119,719.09 125-33-005 2.291 16,164,188.47 116,119,719.0916,164,188.4716,164,188.47Subtotal and Average 1 2.291 Local Agency Investment Fund-City 1Local Agency Inv Fund1055 44,410,563.09 44,410,563.09 2.29144,318,062.14 198-33-434 2.291 44,410,563.09 144,318,062.1444,410,563.0945,184,756.64Subtotal and Average 1 2.291 Federal Agency Coupon Securities 192Federal Farm Credit Bank1092 1,000,000.00 992,600.00 07/12/20191.08007/10/2017 992,300.00 7323133EGLC7 1.456 974Federal Farm Credit Bank1105 1,000,000.00 992,200.00 09/01/20211.70011/09/2017 977,560.00 1,3923133EHWM1 1.913 170Federal Farm Credit Bank1141 500,000.00 494,750.00 06/20/20191.21005/31/2018 496,920.00 3853133EGFU4 2.224 493Federal Farm Credit Bank1142 500,000.00 491,750.00 05/08/20201.55005/31/2018 493,140.00 7083133EHJA2 2.427 1,708Federal Farm Credit Bank1158 250,000.00 247,275.00 09/05/20232.80010/15/2018 250,542.50 1,7863133EJYL7 3.041 848Federal Home Loan Bank1053 2,500,000.00 2,491,250.00 04/28/20211.35004/28/2016 2,434,775.00 1,8263130A7QZ1 1.423 664Federal Home Loan Bank1064 2,500,000.00 2,500,000.00 10/26/20201.37510/26/2016 2,447,825.00 1,4613130A9UQ2 1.375 619Federal Home Loan Bank1104 1,000,000.00 996,800.00 09/11/20201.62511/09/2017 984,540.00 1,0373130A66T9 1.741 1,519Federal Home Loan Bank1121 1,000,000.00 999,000.00 02/28/20232.37504/02/2018 999,650.00 1,7933130ADMF6 3.111 848Federal Home Loan Mtg Corp1054 2,500,000.00 2,500,000.00 04/28/20211.50004/28/2016 2,476,400.00 1,8263134G8Y37 1.400 1,183Federal Home Loan Mtg Corp1073 2,000,000.00 1,990,000.00 03/29/20222.00003/29/2017 1,964,280.00 1,8263134GBAE2 2.106 1,093Federal Home Loan Mtg Corp1084 1,000,000.00 999,500.00 12/29/20212.00007/06/2017 984,040.00 1,6373134GBXF4 2.012 1,303Federal Home Loan Mtg Corp1090 1,000,000.00 1,000,000.00 07/27/20222.15007/27/2017 981,730.00 1,8263134GBWG3 2.150 1,490Federal Home Loan Mtg Corp1116 1,000,000.00 1,000,000.00 01/30/20232.55001/30/2018 991,590.00 1,8263134GSCD5 2.550 1,514Federal Home Loan Mtg Corp1122 750,000.00 746,625.00 02/23/20232.75004/02/2018 750,015.00 1,7883134GSCQ6 2.849 104Federal Home Loan Mtg Corp1129 500,000.00 495,250.00 04/15/20191.12505/10/2018 498,135.00 3403137EADZ9 2.161 1,365Federal Home Loan Mtg Corp1156 400,000.00 398,800.00 09/27/20223.00010/15/2018 401,004.00 1,4433134GSWS0 3.081 391Federal National Mtg Assn1072 2,000,000.00 2,000,000.00 01/27/20201.70003/27/2017 1,980,440.00 1,0363135G0S53 1.700 254Federal National Mtg Assn1139 500,000.00 496,700.00 09/12/20191.75005/31/2018 496,945.00 4693135G0ZG1 2.275 213Federal National Mtg Assn1140 500,000.00 492,000.00 08/02/20190.87505/31/2018 494,950.00 4283135G0N33 2.269 Portfolio CITY CP Run Date: 02/04/2019 - 11:47 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date 22,324,500.00 1,44222,096,781.5022,400,000.0022,324,500.00Subtotal and Average 847 1.912 Treasury Coupon Securities 911U.S. Treasury1045 5,000,000.00 5,000,000.00 06/30/20211.12507/18/2016 4,839,250.00 1,808912828S27 1.125 455U.S. Treasury1068 2,500,000.00 2,483,250.00 03/31/20201.37503/20/2017 2,463,275.00 1,107912828J84 1.602 348U.S. Treasury1069 2,500,000.00 2,490,750.00 12/15/20191.37503/20/2017 2,470,225.00 1,000912828U73 1.513 1,034U.S. Treasury1070 2,000,000.00 1,942,800.00 10/31/20211.25003/27/2017 1,933,280.00 1,679912828T67 1.903 592U.S. Treasury1117 1,000,000.00 985,800.00 08/15/20201.50001/22/2018 983,630.00 9369128282Q2 2.071 150U.S. Treasury1130 1,000,000.00 992,600.00 05/31/20191.50005/10/2018 995,940.00 386912828WL0 2.211 485U.S. Treasury1138 500,000.00 488,250.00 04/30/20201.12505/31/2018 490,585.00 700912828VA5 2.387 14,383,450.00 1,33414,176,185.0014,500,000.0014,383,450.00Subtotal and Average 663 1.562 Certificate of Deposits 139First Business Bank1019 240,000.00 240,000.00 05/20/20191.75005/20/2014 239,289.60 1,82631938QH72 1.751 324First Farmers Bank &Trust Co.1091 240,000.00 240,000.00 11/21/20191.65007/21/2017 237,828.00 853320165HX4 1.653 1,661First National Bank of America1147 245,000.00 245,000.00 07/20/20233.15007/20/2018 241,155.95 1,82632110YLK9 3.152 1,0511st Source Bank1168 245,000.00 245,000.00 11/17/20213.15012/17/2018 244,720.70 1,06633646CKP8 3.153 657First Tech Federal Credit Unio1124 245,000.00 245,000.00 10/19/20202.70004/18/2018 243,740.70 91533715LBJ8 2.623 1,126Third Federal Savings and Loan1112 245,000.00 245,000.00 01/31/20222.50001/30/2018 239,781.50 1,46288413QBY3 2.502 1,259Allegiance Bank1143 245,000.00 245,000.00 06/13/20223.10006/13/2018 243,267.85 1,46101748DBE5 3.102 1,381Alliance Credit Union1095 245,000.00 245,000.00 10/13/20222.25010/13/2017 235,079.95 1,82601859BAA3 2.251 839Amex Centurion1077 240,000.00 240,000.00 04/19/20212.25004/19/2017 234,686.40 1,46102587DP85 2.252 1,336American Express Fed Savings B1096 240,000.00 240,000.00 08/29/20222.40008/29/2017 230,301.60 1,82602587CFU9 2.402 1,541Aneca Federal Credit Union1119 245,000.00 245,000.00 03/22/20232.80003/22/2018 238,502.60 1,826034577AH9 2.802 1,393Barclays Bank1097 240,000.00 240,000.00 10/25/20222.30010/25/2017 230,563.20 1,82606740KLJ4 2.291 1,823Bar Harbor Bank and Trust1172 248,000.00 248,000.00 12/29/20233.35012/31/2018 245,366.24 1,824SYS1172066851WJ 3.352 1,056Belmont Savings Bank1102 245,000.00 245,000.00 11/22/20212.10011/21/2017 237,598.55 1,462080515CD9 2.101 1,150BMW Bank1067 240,000.00 240,000.00 02/24/20222.20002/24/2017 232,528.80 1,82605580AGK4 2.201 744Bankers Bank1086 240,000.00 240,000.00 01/14/20211.80007/14/2017 234,002.40 1,28006610RAP4 1.804 888Capital One Natl Assn FDIC42971082 240,000.00 240,000.00 06/07/20212.25006/07/2017 235,104.00 1,46114042RGD7 2.252 526Capital One USA FDIC339541006 245,000.00 245,000.00 06/10/20201.90006/10/2015 241,810.10 1,827140420RX0 1.902 783Comenity Capital Bank1009 240,000.00 240,000.00 02/22/20211.70002/22/2016 233,126.40 1,82720033APG5 1.702 1,561Citibank NA1123 245,000.00 245,000.00 04/11/20232.90004/11/2018 239,320.90 1,82617312QJ26 2.902 143City National Bank of Florida1132 240,000.00 240,000.00 05/24/20192.20005/24/2018 239,666.40 36517801DDT0 2.200 925Central State Bank1085 240,000.00 240,000.00 07/14/20211.85007/14/2017 232,454.40 1,46115523RBJ4 1.851 1,779Commercial Bank1162 248,000.00 248,000.00 11/15/20233.40011/15/2018 246,157.36 1,82620143PDV9 3.402 155Connect One1011 248,000.00 248,000.00 06/05/20191.50006/05/2015 247,055.12 1,46120786ABD6 1.501 Portfolio CITY CP Run Date: 02/04/2019 - 11:47 PM (PRF_PM2) 7.3.0 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,417CrossFirst Bank1106 245,000.00 245,000.00 11/18/20222.20011/20/2017 234,122.00 1,82422766ACB9 2.201 1,127Discover Bank Greenwood DE CF1066 240,000.00 240,000.00 02/01/20222.25002/01/2017 233,128.80 1,8262546722U1 2.251 385Douglas National Bank1093 240,000.00 240,000.00 01/21/20201.65007/19/2017 237,261.60 916259744DS6 1.655 750Eagle Bank1146 245,000.00 245,000.00 01/20/20212.85007/20/2018 243,936.70 91527002YDV5 2.858 1,578EnerBank USA1125 240,000.00 240,000.00 04/28/20232.95004/30/2018 234,770.40 1,82429278TAY6 2.952 1,427Enterprise Bank, NA1107 245,000.00 245,000.00 11/28/20222.15011/28/2017 233,551.15 1,82629367QCP1 2.151 119Ephrata Bank1016 240,000.00 240,000.00 04/30/20191.65004/30/2014 239,604.00 1,826294209AQ4 1.651 521EverBank1017248,000.00 248,000.00 06/05/20201.70006/05/2015 243,955.12 1,82729976DXX3 1.702 748Farm Bureau Bank1165 248,000.00 248,000.00 01/18/20213.00012/17/2018 247,667.68 763307660LC2 2.898 35Farmers & Merch1018 248,000.00 248,000.00 02/05/20191.25006/05/2015 247,761.92 1,341307814DC4 1.252 1,214Farmers Insurance Group FCU1126 240,000.00 240,000.00 04/29/20222.80004/30/2018 236,306.40 1,46030960QAG2 2.802 721Freedom Credit Union1111 245,000.00 245,000.00 12/22/20202.05012/22/2017 240,315.60 1,09635638BAA9 2.052 139Gulf Coast Bank1024 240,000.00 240,000.00 05/20/20191.75005/19/2014 239,292.00 1,827402194EB6 1.724 958General Electric Credit Union1150 240,000.00 240,000.00 08/16/20213.10008/15/2018 239,676.00 1,097369674AV8 3.100 1,211Goldman Sachs1078 240,000.00 240,000.00 04/26/20222.40004/26/2017 233,352.00 1,82638148PJK4 2.401 559First Bank of Highland1094 240,000.00 240,000.00 07/13/20201.75007/13/2017 235,867.20 1,096319141GT8 1.752 1,290HSBC Bank USA, National Associ1088 240,000.00 240,000.00 07/14/20222.30007/14/2017 231,760.80 1,82640434YLE5 2.301 1,752Jefferson Financial CU1154 245,000.00 245,000.00 10/19/20233.35010/19/2018 242,775.40 1,826474067AQ8 3.352 497Jefferson Bank & Trust1100 245,000.00 245,000.00 05/12/20201.75011/09/2017 241,400.95 915472376AC6 1.751 1,232Kansas State Bank1101 245,000.00 245,000.00 05/17/20222.10011/17/2017 235,606.70 1,64250116CBE8 2.099 1,458Knoxville TVA Credit Union1110 245,000.00 245,000.00 12/29/20222.40012/29/2017 235,420.50 1,826499724AB8 2.401 1,154Maine Savings FCU1171 248,000.00 248,000.00 02/28/20223.30012/28/2018 248,381.92 1,158560507AK1 3.306 1,750Marlin Business Bank1155 248,000.00 248,000.00 10/17/20233.30010/17/2018 245,207.52 1,82657116ARV2 3.302 1,436Medallion Bank1169 248,000.00 248,000.00 12/07/20223.40012/07/2018 247,687.52 1,46158404DCX7 3.402 553Mercantile Bank of Michigan1087 240,000.00 240,000.00 07/07/20201.75007/07/2017 235,932.00 1,09658740XZL7 1.752 59Metabank Sioux Falls1133 245,000.00 245,000.00 03/01/20192.05005/15/2018 244,902.00 29059101LDR5 2.057 528Bank Midwest1002 248,000.00 248,000.00 06/12/20201.65006/12/2015 243,687.28 1,827063615AVO 1.652 321Morgan Stanley Bank1109 245,000.00 245,000.00 11/18/20191.80011/16/2017 243,138.00 73261747MA92 1.800 1,396Merrick Bank1163 248,000.00 248,000.00 10/28/20223.25010/30/2018 246,596.32 1,45959013J4K2 3.252 321Morgan Stanley Private Bk, NA1108 245,000.00 245,000.00 11/18/20191.75011/16/2017 243,032.65 73261760AEP0 1.750 1,407Mountain America Federal CU1099 245,000.00 245,000.00 11/08/20222.30011/08/2017 235,143.65 1,82662384RAC0 2.301 1,750Municipal Trust and Savings1160 245,000.00 245,000.00 10/17/20233.20010/17/2018 241,160.85 1,826625925AR3 3.202 1,085Neighbors FCU1167 245,000.00 245,000.00 12/21/20213.20012/21/2018 244,958.35 1,09664017AAQ7 3.203 1,815National Cooperative Bank, N.A1170 245,000.00 245,000.00 12/21/20233.40012/21/2018 243,010.60 1,826635573AL2 3.402 1,792Numerica Credit Union1164 248,000.00 248,000.00 11/28/20233.55011/28/2018 247,766.88 1,82667054NAN3 3.552 1,029Northpointe Bank1127 240,000.00 240,000.00 10/26/20212.70004/26/2018 236,875.20 1,279666613GV0 2.703 Portfolio CITY CP Run Date: 02/04/2019 - 11:47 PM (PRF_PM2) 7.3.0 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Certificate of Deposits 1,672Bank of New England1151 249,000.00 249,000.00 07/31/20233.25007/31/2018 246,081.72 1,82606426KAN8 3.252 55New York Community Bank1137 245,000.00 245,000.00 02/25/20192.05005/25/2018 244,899.55 276649447RL5 2.050 1,114The Ohio Valley Bank1089 240,000.00 240,000.00 01/19/20221.90007/19/2017 230,784.00 1,645677721CN0 1.903 1,254PCSB Bank1149 245,000.00 245,000.00 06/08/20223.00006/08/2018 242,498.55 1,46169324MAD7 3.002 147Peapack-Gladstone Bank1031 240,000.00 240,000.00 05/28/20191.80005/28/2014 239,488.80 1,826704692AL6 1.801 876PrivateBank & Trust1032 240,000.00 240,000.00 05/26/20211.50005/26/2016 231,595.20 1,82674267GVG9 1.501 1,631RCB Bank1144 245,000.00 245,000.00 06/20/20233.15006/20/2018 241,329.90 1,82674934YAH4 3.152 1,436Red Rocks Credit Union1166 248,000.00 248,000.00 12/07/20223.35012/07/2018 247,231.20 1,46175701LAB3 3.352 692First Bank Richmond1081 245,000.00 245,000.00 11/23/20201.80006/21/2017 239,475.25 1,251319267GC8 1.802 247Riverwood1034248,000.00 248,000.00 09/05/20191.40006/05/2015 246,529.36 1,55376951DAL4 1.402 1,267Sallie Mae Bank Salt Lake CIty1083 240,000.00 240,000.00 06/21/20222.35006/21/2017 232,387.20 1,826795450A70 2.351 154Solomon State1035 248,000.00 248,000.00 06/04/20191.40006/04/2015 247,062.56 1,46183427LAX2 1.401 476Stearnes Bank, N.A.1076 240,000.00 240,000.00 04/21/20201.60004/21/2017 236,217.60 1,096857894TC3 1.588 1,248Synchrony Bank Retail1080 240,000.00 240,000.00 06/02/20222.40006/02/2017 232,975.20 1,82687164XQV1 2.401 850Towne Bank1128 240,000.00 240,000.00 04/30/20212.80004/30/2018 238,336.80 1,09689214PBL2 2.803 1,315Traditions Bank1148 245,000.00 245,000.00 08/08/20223.00006/08/2018 242,052.65 1,52289269CBX9 3.002 1,750UBS Bank USA1161 245,000.00 245,000.00 10/17/20233.35010/17/2018 242,780.30 1,82690348JEJ5 3.352 135Union BankNA1136 240,000.00 240,000.00 05/16/20192.20005/16/2018 239,690.40 36590521AQW1 2.200 805Unity Bank1120 245,000.00 245,000.00 03/16/20212.55003/16/2018 242,172.70 1,09691330ABN6 2.552 1,595University of Iowa Comm. CU1134 240,000.00 240,000.00 05/15/20233.05005/14/2018 235,632.00 1,82791435LAG2 3.052 112Webster Bank1042 240,000.00 240,000.00 04/23/20191.80004/23/2014 239,623.20 1,82694768NJQ8 1.801 56Wells Fargo1043 240,000.00 240,000.00 02/26/20191.20002/26/2016 239,760.00 1,0969497483N5 1.201 531Wex Bank1145 245,000.00 245,000.00 06/15/20202.75006/13/2018 244,551.65 73392937CHG6 2.754 20,214,000.00 1,45519,901,278.1720,214,000.0019,317,483.87Subtotal and Average 956 2.397 Corporate Notes 946Apple Inc1079 500,000.00 493,050.00 08/04/20211.55006/12/2017 484,795.00 1,514037833CC2 1.900 59Johnson and Johnson Corp1075 2,000,000.00 1,993,200.00 03/01/20191.12503/29/2017 1,994,740.00 702478160BR4 1.305 401Microsoft Corporation1118 500,000.00 497,700.00 02/06/20201.85001/22/2018 496,370.00 745594918BV5 2.081 1,680Microsoft Corporation1157 400,000.00 378,360.00 08/08/20232.00010/15/2018 384,584.00 1,758594918BQ6 3.222 1,132Proctor and Gamble1159 500,000.00 487,950.00 02/06/20222.30010/15/2018 492,230.00 1,210742718DY2 3.071 290Toyota Motor Credit Corp1098 500,000.00 498,750.00 10/18/20191.55011/07/2017 494,155.00 71089236TDH5 1.681 4,349,010.00 9494,346,874.004,400,000.004,349,010.00Subtotal and Average 487 1.869 Portfolio CITY CP Run Date: 02/04/2019 - 11:47 PM (PRF_PM2) 7.3.0 Days to Maturity Page 5 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2018 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of La Quinta YTM 365TermCUSIPInvestment # Purchase Date Money Market Accounts 1California Asset Management Pr1153 2,007,042.21 2,007,042.2109/26/2018 2,007,042.21 1SYS1153 0.000 2,007,042.21 12,007,042.212,007,042.211,359,106.42Subtotal and Average 1 0.000 Money Market with Fiscal Agent 1US Bank1058 5,683.67 5,683.6707/01/2016 5,683.67 1SYS1058 0.000 5,683.67 15,683.675,683.675,676.67Subtotal and Average 1 0.000 Managed Pool Accounts-OPEB Trust 1CalPERS CERBT Plan1114 1,447,463.50 1,447,463.5007/01/2018 1,447,463.50 1SYS1114 0.000 1,447,463.50 11,447,463.501,447,463.501,538,699.06Subtotal and Average 1 0.000 656127,927,550.33 129,800,853.41 386 2.011128,671,001.75 129,557,813.41Total and Average Portfolio CITY CP Run Date: 02/04/2019 - 11:47 PM (PRF_PM2) 7.3.0 City of La Quinta Total Earnings City of La Quinta - Sorted by Fund - Fund December 1, 2018 - December 31, 2018 Current Rate Ending Par Value Ending Fund Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted InterestAnnualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 496,700.001139500,000.00 1.750FNMA 729.17 0.00 729.171.728101496,700.003135G0ZG1 0.00 2,000,000.0010722,000,000.00 1.700FNMA 2,833.33 0.00 2,833.331.6681012,000,000.003135G0S53 0.00 492,000.001140500,000.00 0.875FNMA 364.58 0.00 364.580.872101492,000.003135G0N33 0.00 1,000,000.0011161,000,000.00 2.550FHLMC 2,125.00 0.00 2,125.002.5021011,000,000.003134GSCD5 0.00 1,000,000.0010901,000,000.00 2.150FHLMC 1,791.66 0.00 1,791.662.1101011,000,000.003134GBWG3 0.00 2,500,000.0010542,500,000.00 1.500FHLMC 3,125.00 0.00 3,125.001.4721012,500,000.003134G8Y37 0.00 999,500.0010841,000,000.00 2.000FHLMC 1,666.67 0.00 1,666.671.963101999,500.003134GBXF4 0.00 1,990,000.0010732,000,000.00 2.000FHLMC 3,333.33 0.00 3,333.331.9721011,990,000.003134GBAE2 0.00 495,250.001129500,000.00 1.125FHLMC 468.75 0.00 468.751.114101495,250.003137EADZ9 0.00 746,625.001122750,000.00 2.750FHLMC 1,718.75 0.00 1,718.752.710101746,625.003134GSCQ6 0.00 398,800.001156400,000.00 3.000FHLMC 1,000.00 0.00 1,000.002.952101398,800.003134GSWS0 0.00 992,200.0011051,000,000.00 1.700FFCB 1,416.67 0.00 1,416.671.681101992,200.003133EHWM1 0.00 494,750.001141500,000.00 1.210FFCB 504.17 0.00 504.171.200101494,750.003133EGFU4 0.00 992,600.0010921,000,000.00 1.080FFCB 900.00 0.00 900.001.068101992,600.003133EGLC7 0.00 491,750.001142500,000.00 1.550FFCB 645.83 0.00 645.831.546101491,750.003133EHJA2 0.00 247,275.001158250,000.00 2.800FFCB 583.34 0.00 583.342.778101247,275.003133EJYL7 0.00 2,491,250.0010532,500,000.00 1.350FHLB 2,812.50 0.00 2,812.501.3291012,491,250.003130A7QZ1 0.00 996,800.0011041,000,000.00 1.625FHLB 1,354.17 0.00 1,354.171.600101996,800.003130A66T9 0.00 2,500,000.0010642,500,000.00 1.375FHLB 2,864.59 0.00 2,864.591.3491012,500,000.003130A9UQ2 0.00 999,000.0011211,000,000.00 2.375FHLB 1,979.16 0.00 1,979.162.333101999,000.003130ADMF6 0.00 2,483,250.0010682,500,000.00 1.375USTR 2,927.54 0.00 2,927.541.3881012,483,250.00912828J84 0.00 1,942,800.0010702,000,000.00 1.250USTR 2,140.89 0.00 2,140.891.2971011,942,800.00912828T67 0.00 2,490,750.0010692,500,000.00 1.375USTR 2,920.32 0.00 2,920.321.3801012,490,750.00912828U73 0.00 985,800.0011171,000,000.00 1.500USTR 1,263.59 0.00 1,263.591.509101985,800.009128282Q2 0.00 488,250.001138500,000.00 1.125USTR 481.70 0.00 481.701.162101488,250.00912828VA5 0.00 992,600.0011301,000,000.00 1.500USTR 1,277.47 0.00 1,277.471.515101992,600.00912828WL0 0.00 5,000,000.0010455,000,000.00 1.125USTR 4,740.99 0.00 4,740.991.1161015,000,000.00912828S27 0.00 240,000.001043240,000.00 1.200WELLS 244.61 0.00 244.611.200101240,000.009497483N5 0.00 3,989,633.8510573,989,633.85WELLS 0.01 0.00 0.011012,565,606.454159282482 0.00 240,000.001078240,000.00 2.400GLDMAN 489.21 0.00 489.212.400101240,000.0038148PJK4 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:38 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 2 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2018 - December 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001077240,000.00 2.250AMEX 458.63 0.00 458.632.250101240,000.0002587DP85 0.00 240,000.001042240,000.00 1.800WEB 366.91 0.00 366.911.800101240,000.0094768NJQ8 0.00 240,000.001067240,000.00 2.200BMW 448.44 0.00 448.442.200101240,000.0005580AGK4 0.00 248,000.001169248,000.00 3.400MEDBA 554.43 0.00 554.433.4001010.0058404DCX7 0.00 240,000.001097240,000.00 2.300BARCLY 468.82 0.00 468.822.300101240,000.0006740KLJ4 0.00 245,000.001112245,000.00 2.5003RD 520.21 0.00 520.212.500101245,000.0088413QBY3 0.00 240,000.001016240,000.00 1.650EPHRAT 336.33 0.00 336.331.650101240,000.00294209AQ4 0.00 248,000.001163248,000.00 3.250MRRCK 684.55 0.00 684.553.250101248,000.0059013J4K2 0.00 240,000.001019240,000.00 1.7501STBUS 356.71 0.00 356.711.750101240,000.0031938QH72 0.00 240,000.001024240,000.00 1.750GCB 356.71 0.00 356.711.750101240,000.00402194EB6 0.00 240,000.001031240,000.00 1.800PEAPAC 366.90 0.00 366.901.800101240,000.00704692AL6 0.00 240,000.001128240,000.00 2.800TOWNE 570.74 0.00 570.742.800101240,000.0089214PBL2 0.00 0.0010300.00 1.250MORTN 93.42 0.00 93.421.250101248,000.00619165GE7 0.00 248,000.001018248,000.00 1.250FARMER 263.28 0.00 263.281.250101248,000.00307814DC4 0.00 248,000.001035248,000.00 1.400SOLOM 294.88 0.00 294.881.400101248,000.0083427LAX2 0.00 248,000.001011248,000.00 1.500CONNEC 315.95 0.00 315.951.500101248,000.0020786ABD6 0.00 248,000.001034248,000.00 1.400RVRW 294.88 0.00 294.881.400101248,000.0076951DAL4 0.00 248,000.001017248,000.00 1.700EVRBA 358.07 0.00 358.071.700101248,000.0029976DXX3 0.00 245,000.001006245,000.00 1.900CAPONE 395.36 0.00 395.361.900101245,000.00140420RX0 0.00 248,000.001002248,000.00 1.650MIDWES 347.54 0.00 347.541.650101248,000.00063615AVO 0.00 0.0010010.00 1.700ALLY 257.10 0.00 257.101.700101240,000.0002006LWX7 0.00 240,000.001009240,000.00 1.700CCBA 346.52 0.00 346.521.700101240,000.0020033APG5 0.00 240,000.001032240,000.00 1.500PRVTBA 305.75 0.00 305.751.500101240,000.0074267GVG9 0.00 44,410,563.09105544,410,563.09 2.291LAIF 92,079.11 0.00 92,079.112.39910146,410,563.0998-33-434 0.00 240,000.001066240,000.00 2.250DISCOV 458.63 0.00 458.632.250101240,000.002546722U1 0.00 1,993,200.0010752,000,000.00 1.125J&J 1,875.00 0.00 1,875.001.1081011,993,200.00478160BR4 0.00 240,000.001076240,000.00 1.600STRNS 326.14 0.00 326.141.600101240,000.00857894TC3 0.00 493,050.001079500,000.00 1.550APPL 645.83 0.00 645.831.542101493,050.00037833CC2 0.00 240,000.001080240,000.00 2.400SYNCHR 489.21 0.00 489.212.400101240,000.0087164XQV1 0.00 245,000.001081245,000.00 1.800RICHMN 374.55 0.00 374.551.800101245,000.00319267GC8 0.00 240,000.001082240,000.00 2.250CAP1NA 458.63 0.00 458.632.250101240,000.0014042RGD7 0.00 240,000.001083240,000.00 2.350SALMAE 479.02 0.00 479.022.350101240,000.00795450A70 0.00 240,000.001085240,000.00 1.850CNTRL 377.10 0.00 377.101.850101240,000.0015523RBJ4 0.00 240,000.001086240,000.00 1.800BNKRS 366.90 0.00 366.901.800101240,000.0006610RAP4 0.00 240,000.001087240,000.00 1.750MERCTL 356.71 0.00 356.711.750101240,000.0058740XZL7 0.00 240,000.001088240,000.00 2.300HSBC 468.82 0.00 468.822.300101240,000.0040434YLE5 0.00 240,000.001089240,000.00 1.900OHVAL 387.28 0.00 387.281.900101240,000.00677721CN0 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:38 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 3 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2018 - December 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 240,000.001091240,000.00 1.6501STFRM 336.33 0.00 336.331.650101240,000.00320165HX4 0.00 240,000.001093240,000.00 1.650DOUGLS 336.33 0.00 336.331.650101240,000.00259744DS6 0.00 240,000.001094240,000.00 1.750HIGHLD 356.71 0.00 356.711.750101240,000.00319141GT8 0.00 245,000.001095245,000.00 2.250ALLIAN 468.19 0.00 468.192.250101245,000.0001859BAA3 0.00 240,000.001096240,000.00 2.400AMFSB 489.20 0.00 489.202.400101240,000.0002587CFU9 0.00 498,750.001098500,000.00 1.550TOYOTA 645.84 0.00 645.841.525101498,750.0089236TDH5 0.00 245,000.001099245,000.00 2.300MTNAMR 478.59 0.00 478.592.300101245,000.0062384RAC0 0.00 245,000.001100245,000.00 1.750JFFRSN 364.15 0.00 364.151.750101245,000.00472376AC6 0.00 245,000.001101245,000.00 2.100KANSAS 436.97 0.00 436.972.100101245,000.0050116CBE8 0.00 245,000.001102245,000.00 2.100BELMNT 436.98 0.00 436.982.100101245,000.00080515CD9 0.00 245,000.001106245,000.00 2.200CRS1ST 457.78 0.00 457.782.200101245,000.0022766ACB9 0.00 245,000.001107245,000.00 2.150ENTRPR 447.38 0.00 447.382.150101245,000.0029367QCP1 0.00 245,000.001108245,000.00 1.750MSPRIV 364.14 0.00 364.141.750101245,000.0061760AEP0 0.00 245,000.001109245,000.00 1.800MORGST 374.55 0.00 374.551.800101245,000.0061747MA92 0.00 245,000.001110245,000.00 2.400KNOX 499.40 0.00 499.402.400101245,000.00499724AB8 0.00 245,000.001111245,000.00 2.050FREECU 426.57 0.00 426.572.050101245,000.0035638BAA9 0.00 3,300.0010593,300.00CITYPC 0.00 0.00 0.001013,300.00SYS1059 0.00 1,447,463.5011141,447,463.50CALPRS 0.00 0.00 0.001011,541,740.25SYS1114 0.00 378,360.001157400,000.00 2.000MCRSFT 666.67 0.00 666.672.075101378,360.00594918BQ6 0.00 497,700.001118500,000.00 1.850MCRSFT 770.83 0.00 770.831.824101497,700.00594918BV5 0.00 245,000.001119245,000.00 2.800ANECA 582.63 0.00 582.632.800101245,000.00034577AH9 0.00 245,000.001120245,000.00 2.550UNITY 530.61 0.00 530.612.550101245,000.0091330ABN6 0.00 245,000.001123245,000.00 2.900CITINA 603.43 0.00 603.432.900101245,000.0017312QJ26 0.00 245,000.001124245,000.00 2.7001STTCH 561.82 0.00 561.822.700101245,000.0033715LBJ8 0.00 240,000.001125240,000.00 2.950ENER 601.32 0.00 601.322.950101240,000.0029278TAY6 0.00 240,000.001126240,000.00 2.800FARMIG 570.73 0.00 570.732.800101240,000.0030960QAG2 0.00 240,000.001127240,000.00 2.700NORPNT 550.35 0.00 550.352.700101240,000.00666613GV0 0.00 240,000.001132240,000.00 2.200CNBF 448.44 0.00 448.442.200101240,000.0017801DDT0 0.00 245,000.001133245,000.00 2.050METASF 426.57 0.00 426.572.050101245,000.0059101LDR5 0.00 240,000.001134240,000.00 3.050UOFICU 621.70 0.00 621.703.050101240,000.0091435LAG2 0.00 245,000.001137245,000.00 2.050NYCMBK 426.57 0.00 426.572.050101245,000.00649447RL5 0.00 240,000.001136240,000.00 2.200UNION 448.44 0.00 448.442.200101240,000.0090521AQW1 0.00 245,000.001143245,000.00 3.100ALLGNC 645.05 0.00 645.053.100101245,000.0001748DBE5 0.00 245,000.001144245,000.00 3.150RCB 655.45 0.00 655.453.150101245,000.0074934YAH4 0.00 245,000.001145245,000.00 2.750WEX 572.23 0.00 572.232.750101245,000.0092937CHG6 0.00 245,000.001146245,000.00 2.850EAGLE 593.03 0.00 593.032.850101245,000.0027002YDV5 0.00 245,000.001147245,000.00 3.1501STNBA 655.46 0.00 655.463.150101245,000.0032110YLK9 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:38 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 4 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2018 - December 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss Fund: General Fund 245,000.001148245,000.00 3.000TRAD 624.25 0.00 624.253.000101245,000.0089269CBX9 0.00 245,000.001149245,000.00 3.000PCSB 624.25 0.00 624.253.000101245,000.0069324MAD7 0.00 240,000.001150240,000.00 3.100GECRUN 631.90 0.00 631.903.100101240,000.00369674AV8 0.00 249,000.001151249,000.00 3.250NWENGL 687.31 0.00 687.313.250101249,000.0006426KAN8 0.00 2,007,042.2111532,007,042.21CAMP 2,866.98 0.00 2,866.982.4841011,004,175.23SYS1153 0.00 245,000.001154245,000.00 3.350JEFF 697.08 0.00 697.083.350101245,000.00474067AQ8 0.00 248,000.001155248,000.00 3.300MARBUS 695.08 0.00 695.083.300101248,000.0057116ARV2 0.00 487,950.001159500,000.00 2.300P&G 958.33 0.00 958.332.312101487,950.00742718DY2 0.00 245,000.001160245,000.00 3.200MUNTRS 665.86 0.00 665.863.200101245,000.00625925AR3 0.00 245,000.001161245,000.00 3.350UBS 697.07 0.00 697.073.350101245,000.0090348JEJ5 0.00 248,000.001162248,000.00 3.400COMMBK 716.14 0.00 716.143.400101248,000.0020143PDV9 0.00 248,000.001164248,000.00 3.550NMRCA 747.74 0.00 747.743.550101248,000.0067054NAN3 0.00 248,000.001165248,000.00 3.000FARMBU 285.37 0.00 285.373.0001010.00307660LC2 0.00 248,000.001166248,000.00 3.350REDRCK 546.28 0.00 546.283.3501010.0075701LAB3 0.00 245,000.001167245,000.00 3.200NEIGH 236.27 0.00 236.273.2001010.0064017AAQ7 0.00 245,000.001168245,000.00 3.1501STSRC 317.16 0.00 317.163.1501010.0033646CKP8 0.00 245,000.001170245,000.00 3.400NLCOOP 251.04 0.00 251.043.4001010.00635573AL2 0.00 248,000.001171248,000.00 3.300MAINE 67.27 0.00 67.273.3001010.00560507AK1 0.00 248,000.001172248,000.00 3.350BARHAR 0.00 0.00 0.001010.00SYS1172066851 0.00 113,372,002.65Subtotal 113,128,962.65 1.980 186,773.880.00186,773.88111,309,345.02 0.00 Fund: 1st Empire Securities Cash Bal 0.0010600.00EMPIRE 411.95 0.00 411.951.095102500,000.00SYS1060 0.00 0.00Subtotal 0.00 1.095 411.950.00411.95500,000.00 0.00 Fund: Fiscal Agent 5,683.6710585,683.67USBANK 7.23 0.00 7.231.5002315,676.44SYS1058 0.00 5,683.67Subtotal 5,683.67 1.500 7.230.007.235,676.44 0.00 Fund: Housing Authority : WSA and LQ 258,978.621062258,978.62LQPR 0.00 0.00 0.00241242,547.25SYS1062 0.00 258,978.62Subtotal 258,978.62 0.000.000.00242,547.25 0.00 Fund: SA Low/Mod Bond Fund 16,164,188.47111316,164,188.47 2.291LAIF 32,939.96 0.00 32,939.962.39924916,164,188.4725-33-005 0.00 16,164,188.47Subtotal 16,164,188.47 2.399 32,939.960.0032,939.9616,164,188.47 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:38 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 Current Rate Ending Par Value Ending Fund Page 5 Book Value Beginning Book Value Adjusted Interest Earnings Accretion Amortization/ Earnings Adjusted Interest December 1, 2018 - December 31, 2018 Total Earnings City of La Quinta Annualized YieldCUSIPInvestment # Interest EarnedIssuer Realized Gainl/Loss 129,800,853.41Total 129,557,813.41 2.026 220,133.020.00220,133.02128,221,757.18 0.00 Portfolio CITY CP Run Date: 02/07/2019 - 14:38 TE (PRF_TE) 7.3.6 Report Ver. 7.3.6.1 City of La Quinta -City of La Quinta Maturity Report Sorted by Maturity Date Received or due during October 1, 2018 - December 31, 2018 Rate at MaturityPar Value Sec. TypeFund Maturity Date Maturity ProceedsInterest Income Net CUSIP Investment #Issuer Purchase Date Book Value at Maturity 2,500,000.00 0.875 2,510,937.5010,937.5010/24/2016USTR1063912828L81TRC10110/15/2018 8,687.502,502,250.00 240,000.00 1.500 241,804.931,804.9304/30/20141STMER102032082BDF3MC110110/30/2018 1,804.93240,000.00 500,000.00 1.250 503,125.003,125.0011/09/2017USTR1103912828M64TRC10111/15/2018 4,285.00498,840.00 500,000.00 1.250 503,125.003,125.0005/10/2018USTR1131912828A34TRC10111/30/2018 5,125.00498,000.00 248,000.00 1.250 248,254.79254.7906/12/2015MORTN1030619165GE7MC110112/12/2018 254.79248,000.00 240,000.00 1.700 242,045.592,045.5912/24/2015ALLY100102006LWX7MC110112/24/2018 2,045.59240,000.00 4,249,292.81Total Maturities 4,228,000.00 21,292.814,227,090.00 22,202.81 Portfolio CITY CP Run Date: 02/04/2019 - 14:27 MA (PRF_MA) 7.1.1 Report Ver. 7.3.6.1 City of La Quinta -City of La Quinta Purchases Report Sorted by Fund - Fund October 1, 2018 - December 31, 2018 Original Par Value Ending Book Value Sec. TypeFund Maturity YTM Accrued Interest at PurchasePayment Periods DateCUSIPInvestment #Issuer Purchase Date Principal Purchased Rate at Purchase General Fund 250,000.00 2.800 09/05/2023 247,275.00247,275.00 Received10/15/2018 3.04103/05 - 09/05FFCB11583133EJYL7FAC101 400,000.00 3.000 09/27/2022 398,800.00398,800.00 Received10/15/2018 3.08103/27 - 09/27FHLMC11563134GSWS0FAC101 400,000.00 2.000 08/08/2023 378,360.00378,360.00 Received10/15/2018 3.22202/08 - 08/08MCRSFT1157594918BQ6MC2101 500,000.00 2.300 02/06/2022 487,950.00487,950.00 Received10/15/2018 3.07102/06 - 08/06P&G1159742718DY2MC2101 248,000.00 3.300 10/17/2023 248,000.00248,000.0010/17/2018 3.30211/17 - MonthlyMARBUS115557116ARV2MC1101 245,000.00 3.200 10/17/2023 245,000.00245,000.0010/17/2018 3.20211/17 - MonthlyMUNTRS1160625925AR3MC1101 245,000.00 3.350 10/17/2023 245,000.00245,000.0010/17/2018 3.35211/17 - MonthlyUBS116190348JEJ5MC1101 245,000.00 3.350 10/19/2023 245,000.00245,000.0010/19/2018 3.35204/19 - 10/19JEFF1154474067AQ8MC1101 248,000.00 3.250 10/28/2022 248,000.00248,000.0010/30/2018 3.25211/30 - MonthlyMRRCK116359013J4K2MC1101 248,000.00 3.400 11/15/2023 248,000.00248,000.0011/15/2018 3.40212/15 - MonthlyCOMMBK116220143PDV9MC1101 248,000.00 3.550 11/28/2023 248,000.00248,000.0011/28/2018 3.55212/28 - MonthlyNMRCA116467054NAN3MC1101 248,000.00 3.400 12/07/2022 248,000.00248,000.0012/07/2018 3.40201/07 - MonthlyMEDBA116958404DCX7MC1101 248,000.00 3.350 12/07/2022 248,000.00248,000.0012/07/2018 3.35201/07 - MonthlyREDRCK116675701LAB3MC1101 245,000.00 3.150 11/17/2021 245,000.00245,000.0012/17/2018 3.15306/17 - 12/171STSRC116833646CKP8MC1101 248,000.00 3.000 01/18/2021 248,000.00248,000.0012/17/2018 2.89801/17 - MonthlyFARMBU1165307660LC2MC1101 245,000.00 3.200 12/21/2021 245,000.00245,000.0012/21/2018 3.20306/21 - 12/21NEIGH116764017AAQ7MC1101 245,000.00 3.400 12/21/2023 245,000.00245,000.0012/21/2018 3.40206/21 - 12/21NLCOOP1170635573AL2MC1101 248,000.00 3.300 02/28/2022 248,000.00248,000.0012/28/2018 3.30601/28 - MonthlyMAINE1171560507AK1MC1101 248,000.00 3.350 12/29/2023 248,000.00248,000.0012/31/2018 3.35201/31 - MonthlyBARHAR1172SYS1172066851WJMC1101 Subtotal 5,214,385.005,214,385.00 0.005,252,000.00 5,214,385.00Total Purchases 5,252,000.00 0.00 5,214,385.00 Received = Accrued Interest at Purchase was received by report ending date. Portfolio CITY CP Run Date: 02/04/2019 - 13:18 PU (PRF_PU) 7.1.1 Report Ver. 7.3.6.1 US Treasury Rates https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2018 Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 10/31/2018 2.2 2.34 2.49 2.69 2.87 2.93 2.98 3.07 3.15 3.3 3.39 11/30/2018 2.31 2.37 2.52 2.70 2.80 2.83 2.84 2.92 3.01 3.19 3.3 12/31/2018 2.44 2.45 2.56 2.63 2.48 2.46 2.51 2.59 2.69 2.87 3.02 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2 yr 10 yr Commercial Paper Rates https://www.federalreserve.gov/releases/cp/rates.htm City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR YEAR ENDING JUNE 30, 2018 RECOMMENDATION Receive and file the Comprehensive Annual Financial Report for the year ending June 30, 2018. EXECUTIVE SUMMARY • California cities must obtain an annual audit of their financial statements by an independent auditor at close of each fiscal year. • The annual audit produces the Comprehensive Annual Financial Report (CAFR) (Attachment 1). • The independent auditors rendered an unmodified (“clean”) opinion; which is the most favorable conclusion. • The CAFR was presented to City Council on January 15, 2019. FISCAL IMPACT - None BACKGROUND/ANALYSIS At the end of each fiscal year, the City’s financial records are audited by an independent audit firm pursuant to California law. The results (including City background information, statistical data, and detailed financial reports) are compiled and presented in the CAFR. In the independent auditors’ report (located at the front of the financial section of the CAFR), Vavrinek, Trine, Day & Co., LLP (VTD) Certified Public Accountants issued an “unmodified” opinion on the City’s financial statements for the year ended June 30, 2018, which is the most favorable conclusion. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the BUSINESS SESSION ITEM NO. 1 accounting principles used and estimates made by management, and evaluating the overall financial statement presentation. Attachment 1 provides a summary of the CAFR. This report was presented, received and file by the City Council on January 15, 2019. ALTERNATIVES The CAFR and audit are required by State law, therefore, no alternatives are recommended. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. 2017/18 Comprehensive Annual Financial Report Summary 2017/18 Comprehensive Annual Financial Report (CAFR) Summary The 2017/18 CAFR (Exhibit A) contains numerous comprehensive financial reports pertaining to all aspects of the City’s finances, which includes financial statements for all City funds (including the general, special revenue, housing, capital project, internal service, and other fund types). The CAFR also contains information regarding the City’s accounting methods and procedures, and the results of the independent audit. Financial information is conveyed both by major fund type and in a comprehensive manner; thus, the information is somewhat complex to interpret. Because of this, specific detailed information regarding the General Fund year-end budget results for 2017/18 were presented separately at the November 20, 2018 Council meeting. The Management Discussion and Analysis section (starting on page 4) provides an overview and analysis of the financial statements, which is useful when reading through the CAFR. In addition, the Notes to the Basic Financial Statements (pages 32 to 74) provide a written explanation of accounting methods and year-over-year changes. Significant Changes and Financial Highlights Governmental Revenues and Expenses Governmental Activities include 23 individual governmental funds and include capital asset activity allocated on a percentage basis by department. Revenues overall increased by $11,736,000 with the largest increase ($10,490,000) being Other Taxes which includes Measure G transaction and use sales tax. 2017/18 was the first full year of collecting Measure G sales taxes ($9,967,656 compared to $1,462,650 in 2016/17). Expenditure increases of $12.3M are largely attributed to the fixed asset disposal expenses related to the transfer of ownership for Washington Street Apartments, whereby capital assets were reduced by $10,202,000 and recorded as an expense. This large decrease is depicted below. Capital Assets (net of depreciation) 2017 2018 2017 2018 2017 2018 Land 74,316,674 66,594,534 39,712,955 39,712,955 114,029,629 106,307,489 Buildings & Improvements 44,119,422 40,659,592 3,771,368 3,556,823 47,890,790 44,216,415 Equipment & Furniture 1,028,468 1,012,039 352,545 316,102 1,381,013 1,328,141 Vehicles 572,048 1,000,246 - - 572,048 1,000,246 Software - - - - - - Infrastructure 391,078,543 387,495,409 - - 391,078,543 387,495,409 Construction in Progress 9,969,495 14,151,774 - - 9,969,495 14,151,774 TOTAL 521,084,650 510,913,594 43,836,868 43,585,880 564,921,518 554,499,474 Governmental Activities Business-Type ActivitiesDescription Total By Fiscal Year Governmental Fund Balances The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The unassigned General Fund balance comprised $19,199,506, or 16%, of the total $121,823,567 balance and represented 34% of total final General Fund budgeted expenditures including transfers. As of the end of 2017/18, the City's governmental funds reported combined ending fund balances of $149,681,294 as follows: Governmental Fund Balances The All Other Funds include nineteen special revenue funds, Capital Improvement Fund, Civic Center Fund, and the Housing Authority Fund. These funds combined have a restricted balance of $39,263,604 which is reduced by a negative unassigned balance of $11,405,877, leaving $7,793,629 of total government wide unassigned spendable reserves. This negative balance largely represents inter-fund loans as follows: The loans due to the General Fund (including SilverRock $5,468,718) are presented as receivables in the General Fund nonspendable category. The remaining negative unassigned fund balance of $347,952 represents pending grant reimbursements at year end. Staff will present an update on inter-fund loans in the Spring of 2019. Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 52,976,449$ 44%-$ 0%52,976,449$ 36% Restricted - 0%39,263,604 141%39,263,604 26% Committed 29,726,500 24%- 0%29,726,500 20% Assigned 19,921,112 16%- 0%19,921,112 13% Unassigned 19,199,506 16%(11,405,877) -41%7,793,629 5% TOTAL 121,823,567$ 100%27,857,727$ 100%149,681,294$ 100% From Fund Due to Loan Balance Civic Center General Fund 7,103,053$ Street Facility DIF General Fund 1,891,472 Fire DIF General Fund 490,843 Library DIF Former RDA 1,572,557 11,057,925$ Outstanding Debt Total governmental activities debt decreased by $3,518,385 from $6,784,262 to $3,265,877. This was primarily due to a second loan installment payment ($1,125,000) for the Eisenhower Drive retention basin land purchased for drainage improvements and the transfer of the Housing Authority Provident and United States Department of Agriculture loans to Coachella Valley Housing Coalition ($1,908,669). The 1996 lease revenue bond was fully paid in October 2018 and the final payment for Land Acquisition Note Payable will be made in the spring of 2019. Additional information on long-term debt can be found in Note 5 of the financial statements. Outstanding debt associated with the Successor Agency (former Redevelopment Agency) is reported under Fiduciary Funds and detailed in Note 16 beginning on page 68 of the CAFR. This debt is not reported under governmental activities. Upon dissolution of the Redevelopment Agency, property taxes allocated for redevelopment agencies were no longer deemed tax increment but rather property tax revenues allocated solely for dissolution. Major Capital Improvements The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty-two (42) active Capital Improvement Projects budgeted during 2017/18. The five most active projects were: • Citywide drainage improvements ($1,443,000) • Pavement Management Plan street improvements ($1,091,000) • Madison Street median landscape improvements ($909,000) • Eisenhower Drive at Montezuma Roundabout ($650,000) • North La Quinta landscape renovations ($641,000) Debt Type:2017 2018 Capital Leases 530,163$ 667,035$ Compensated Absences 830,430 823,842 Land Acquisition Note Payable 2,250,000 1,125,000 Loans Payable 1,908,669 - Revenue Bonds 1,265,000 650,000 TOTAL 6,784,262$ 3,265,877$ Governmental Activities Post-Employment Pension and Health Obligations The City has three tiers of pension benefits (described on page 57 of the CAFR). The total outstanding unfunded pension obligation at June 30, 2018 was $12,612,523. Since June the City has fully paid the Tier II and PEPRA tier liabilities, leaving an unfunded balance of $12,011,122 for the Classic Tier. In 2018 the City implemented a new Reserve Policy and established a Pension Trust reserve with an initial deposit of $2,000,000. Below is a four-year summary of these obligations. CalPERS lowered the discount rate (rate of return on investments) from 7.5% to 7% over a three- year period which has contributed to the increase of the outstanding pension obligation. In addition, the amortization period for future obligations is being lowered from 30 years to 20 years and will result in increased annual contributions from all agencies. Other Post-Employment Benefit Plan (OPEB) for retiree healthcare are summarized starting on page 60 of the CAFR. The outstanding obligation as of June 30, 2018 was $1,380,949. An OPEB trust was established in December 2017 and funds deposited ($1,523,400) will be reflected in the 2018/19 CAFR. The trust activity is not recognized in 2017/18 because the measurement date for the obligation ended on June 30, 2017 and the trust was established after this date. Because of the time needed to prepare actuarial reports, there will continue be a one-year lag between the measurement dates and future contributions for both these trusts (Pension and OPEB). 2015 2016 2017 2018 Pensions 6,433,391 8,651,290 10,874,098 12,612,523 OPEB 741,071 813,077 1,288,598 1,380,949 Years Ended June 30, FISCAL YEAR ENDED JUNE 30, 2018 City of La Quinta La Quinta, California EXHIBIT A CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2018 CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2018 Prepared by the Finance Department CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal .................................................................................................................................. i List of Principal Officials .......................................................................................................................... v Organizational Chart................................................................................................................................. vi Certificate of Achievement for Excellence in Financial Reporting (GFOA) ......................................... vii FINANCIAL SECTION Independent Auditors' Report .................................................................................................................... 1 Management's Discussion and Analysis .................................................................................................... 4 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position .................................................................................................................... 17 Statement of Activities ........................................................................................................................ 18 Fund Financial Statements Balance Sheet – Governmental Funds ................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ...................................................................... 22 Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds .......................................................................................................................... 23 Reconciliation of Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities ......................................... 25 Statement of Net Position – Proprietary Funds ................................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ............................................................................................. 27 Statement of Cash Flows – Proprietary Funds..................................................................................... 28 Statement of Net Position – Fiduciary Funds ...................................................................................... 30 Statement of Changes in Net Position – Fiduciary Funds ................................................................... 31 Notes to the Basic Financial Statements .................................................................................................. 32 CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS (Continued) Page REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedules: General Fund .................................................................................................................................. 75 Housing Authority Special Revenue Fund ..................................................................................... 76 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous Plan ......................... 77 Schedule of Plan Contributions – Miscellaneous Plan ........................................................................ 78 Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................. 79 Notes to Required Supplementary Information ................................................................................... 80 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet – Nonmajor Governmental Funds ............................................................ 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ........................................................ 90 Budgetary Comparison Schedules – Special Revenue Funds State Gas Tax ................................................................................................................................... 97 Library and Museum ........................................................................................................................ 98 Federal Assistance ............................................................................................................................ 99 SLESA ........................................................................................................................................... 100 Lighting and Landscaping .............................................................................................................. 101 Quimby .......................................................................................................................................... 102 Public Safety .................................................................................................................................. 103 Art in Public Places ........................................................................................................................ 104 South Coast Air Quality ................................................................................................................. 105 AB 939 ........................................................................................................................................... 106 Law Enforcement ........................................................................................................................... 107 Justice Assistance Grant ................................................................................................................. 108 Measure A ...................................................................................................................................... 109 Budgetary Comparison Schedules – Capital Projects Funds Capital Improvement ...................................................................................................................... 110 Civic Center ................................................................................................................................... 111 Transportation ................................................................................................................................ 112 Parks and Recreation ...................................................................................................................... 113 Library Development ..................................................................................................................... 114 Community Center ......................................................................................................................... 115 Street Facility ................................................................................................................................. 116 Park Facility ................................................................................................................................... 117 Fire Facility .................................................................................................................................... 118 CITY OF LA QUINTA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2018 TABLE OF CONTENTS (Continued) Page Budgetary Comparison Schedules – Debt Service Funds Financing Authority ....................................................................................................................... 119 Combining Statement of Net Position – Internal Service Funds ................................................... 121 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ............................................................................ 122 Combining Statement of Cash Flows – Internal Service Funds ..................................................... 123 Combining Statement of Net Position – All Agency Funds .......................................................... 125 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ......................... 126 STATISTICAL SECTION Net Position by Component (Table 1) .................................................................................................. 128 Changes in Net Position (Table 2) ........................................................................................................ 130 Changes in Net Position – Governmental Activities (Table 3) ............................................................ 132 Changes in Net Position – Business-type Activities (Table 4) ............................................................. 134 Fund Balances of Governmental Funds (Table 5) ................................................................................ 136 Changes in Fund Balances of Governmental Funds (Table 6) ............................................................. 138 Tax Revenue by Source (Table 7) ........................................................................................................ 140 Top 25 Sales Tax Producers (Table 8) ................................................................................................. 142 Taxable Sales by Category (Table 9) ................................................................................................... 143 Assessed Value and Estimated Actual Value of Taxable Property (Table 10) .................................... 145 Direct and Overlapping Property Tax Rates (Table 11) ....................................................................... 146 Principal Property Taxpayers (Table 12) .............................................................................................. 148 Property Tax Levies and Collections (Table 13) .................................................................................. 149 Ratios of Outstanding Debt by Type (Table 14) .................................................................................. 150 Ratio of General Bonded Debt Outstanding (Table 15) ....................................................................... 152 Direct and Overlapping Debt (Table 16) .............................................................................................. 153 Legal Debt Margin Information (Table 17) .......................................................................................... 154 Pledged-Revenue Coverage (Table 18) ................................................................................................ 156 Demographic and Economic Statistics (Table 19) ............................................................................... 157 Principal Employers (Table 20) ............................................................................................................ 158 Full-time City Employees (Table 21) ................................................................................................... 159 Operating Indicators (Table 22) ........................................................................................................... 160 Capital Asset Statistics (Table 23) ........................................................................................................ 161 Schedule of Insurance in Force (Table 24) ........................................................................................... 162 This page left blank intentionally. i December 27, 2018 To the Citizens of La Quinta, the Honorable Mayor and Members of the City Council: Submitted herein is the City of La Quinta Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2018. The CAFR presents information regarding the City’s financial activities. This transmittal letter provides a non-technical summary of the City’s finances, services, achievements, and economic outlook. A more detailed analytical analysis is presented in the Management’s Discussion and Analysis section (MD&A) that immediately follows the independent auditors’ report. The MD&A provides an overview and analysis of the basic financial statements and complements this transmittal. Responsibility for the accuracy and the completeness of all disclosures rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of City operations. Supplementary disclosures are included to summarize the City’s financial activities. This CAFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP). The City’s financial reporting is based upon all Governmental Accounting Standards Board (GASB) pronouncements. Government Code Section 26909 (a) requires the City to contract with a certified public accountant to perform an annual audit of the City’s accounts and records, and the audit must conform to generally accepted auditing standards. Further, Government Code Section 26909 (b) states that an audit report shall be filed with the State Controller and with the County Auditor within 12 months of the end of the fiscal year. In addition, City Ordinance 2.12.040 requires an annual audit be performed by a certified public accountant. This CAFR fulfills these requirements. Management assumes full responsibility for the completeness and reliability of the information contained in this CAFR, based upon a comprehensive framework of internal controls that has been established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable rather than absolute assurance that the financial statements are free of any material misstatements. ii The independent auditors’ report is located at the front of the financial section. Vavrinek, Trine, Day & Co., LLP Certified Public Accountants have issued an unmodified (“clean”) opinion on the City’s financial statements for the year ended June 30, 2018. This is the most favorable conclusion. The independent audit involved examining evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and estimates made by management, and evaluating the overall financial statement presentation and conformity with GAAP. Government Profile The City of La Quinta is located 120 miles east of Los Angeles in the eastern portion of Riverside County known as the Coachella Valley. The City was incorporated in 1982 as a general law City and became a charter city in November 1996. It is governed by a five- member City Council under the Council/Manager form of government. The Mayor is directly elected and serves a two-year term; the four Council Members serve four-year terms, with two Council Members elected every two years. The Mayor and Council Members are elected at large. The Council appoints the City Manager, who in turn appoints the Directors of the various departments. The City provides a range of services, which include street and infrastructure construction and maintenance; community development and planning; construction and code compliance; recreational and cultural activities; and operations management. The City contracts with other government agencies and private entities for specific services, including police and fire protection, library and museum services, water and sewer service, electricity service, public transit, refuse collection, and street sweeping. The City is also financially accountable for legally separate public entities – the Successor Agency for the former Redevelopment Agency, the Financing Authority, and the Housing Authority. Additional information on these entities can be found in the notes to the financial statements. Pursuant to City Ordinance 2.08.060 and 2.12.030, the City Manager and Finance Director are responsible for annual budget, which the City Council reviews and approves prior to the start of each fiscal year. The annual budget is the foundation for the City’s financial planning and control. iii The budget is prepared by fund, function, department, and line item. Department Directors may transfer line item resources within a division with the approval of the City Manager. The City Manager may authorize transfers between divisions and departments. Local Economy The City of La Quinta comprises an area of approximately 36 square miles and, as of January 2018 has a full-time population of 41,204 according to California Department of Finance records. Nearly 18,000 seasonal residents also call La Quinta home from October through May each year. According to the State of California Employment Development Department, as of October 2018, the seasonally unadjusted unemployment rate for La Quinta was 5%, which was higher than Riverside County’s at 4.4% and the statewide average of 4%. The City’s dominant industries are recreation, tourism and retailers with the following major employers: La Quinta Resort and Club, Desert Sands Unified School District, Wal-Mart Super Center, Costco, Home Depot, Imperial Irrigation District, Lowe’s Home Improvement, Target, and Traditions Golf Club. Long-term Financial Planning Sound financial governance continues to be management’s focus. The City has a long history of providing superior service, life enrichment opportunities, and a quality environment to its residents, businesses, and visitors. In June 2018 the City Council adopted a conservative budget for fiscal year 2018/19 based on current economic conditions. The adopted budget had operating revenues exceeding expenses by $65,751. Included in the 2018/19 budget $12.3 million of capital improvements with 49% of these funds coming from the General Fund. Improvements include parkway landscape turf conversion north of Highway 111, drainage improvements, and road and sidewalk improvements to decrease vehicle congestion and improve walkability. La Quinta has cultivated a sound foundation of General Fund revenues including sales tax, transient occupancy (hotel) tax, and property tax. The City was incorporated in 1982 after Proposition 13 was approved (the landmark property tax reform initiative enacted in 1978); as such, the City receives a smaller share of property tax revenue and must rely heavily on sales tax and transient occupancy (hotel) tax revenue for General Fund income. iv The Future The luxury Montage and lifestyle Pendry hotels are scheduled to break ground in early 2019. The development is adjacent to the SilverRock Golf Resort and includes a spa, conference center, lifestyle branded residential, resort and mixed-use villages, and a golf clubhouse. In 2019, the City will construct a 14-acre passive community park adjacent to this development. The park will feature rolling hills, water features, meandering walkways, and breathtaking views of the Santa Rosa Mountains. The Highway 111 business corridor accounts for nearly 70% of the City’s annual sales tax revenue. A visionary assessment of the corridor was completed in the spring of 2018 and identified design and aesthetic opportunities to promote business visibility and access, impacts of emerging technology, evaluated mixed use development, and future land-use and development strategies. In 2019, the City will craft a corridor area plan to guide future improvements and developments. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the fiscal year ended June 30, 2017. This was the twenty-first consecutive year that the City has received this prestigious award. To be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized CAFR. A Certificate of Achievement is valid for one year. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We extend our deepest gratitude to all Finance Department staff for their skill, effort, and dedication in completing the CAFR. Credit is also due to the Mayor and City Council for their support in maintaining high standards when managing the City’s finances. v City of La Quinta List of Principal Officers June 30, 2018 CITY COUNCIL Linda Evans, Mayor Kathleen Fitzpatrick, Mayor Pro Tem John Peña, Council Member Robert Radi, Council Member Steve Sanchez, Council Member ADMINISTRATION Frank J. Spevacek, City Manager Karla Campos, Finance Director/ City Treasurer Christopher Escobedo, Community Resources Director Steve Howlett, Facilities Director Danny Castro, Design and Development Director/ City Engineer Monika Radeva, City Clerk William H. Ihrke, City Attorney vi vii This page left blank intentionally. 19340 Jesse Ln., Suite 260, Riverside, CA 92508 P 951.367.3000 F 951.367.3010 W vtdcpa.com 1 INDEPENDENT AUDITORS’ REPORT The Honorable Mayor and Members of City Council City of La Quinta, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of La Quinta, California, (City), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 1 to the financial statements, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, effective July 1, 2017. This resulted in a restatement of beginning net position as disclosed in note 18 to the financial statements. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 16, schedule of the City’s proportionate share of the net pension liability on page 77, schedule of plan contributions on page 78, schedule of changes in the total OPEB liability and related ratios on page 79, budgetary comparison schedules for the General Fund on page 75 and Housing Authority special revenue fund on page 76 and the related notes on page 80, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual fund statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2018, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Riverside, California December 27, 2018 This page left blank intentionally. 4 Management's Discussion and Analysis This narrative provides an overview and analysis of the City of La Quinta’s (City) financial activities for the fiscal year ending June 30, 2018. The City Executive Team encourages readers to consider this information in conjunction with the data provided in our transmittal letter, which is in an earlier section of this report. All amounts, unless otherwise indicated, are rounded to the nearest thousands of dollars and dates are represented by fiscal year. Highlights At the close of 2017/18 (June 30, 2018): •Primary government assets exceeded its liabilities by $719,452,000 (net position). Of this amount, $125,747,000 (unrestricted net position) may be used to meet ongoing obligations and approximately $554,499,000 or 77% was invested in capital assets and is not available to meet ongoing obligations. •Governmental activities total net position increased by $7,400,000 and the Business-Type total net position decreased by $313,000 which is attributable to the SilverRock Golf Course. •Governmental funds (General Fund, Housing Authority, Capital Improvement Fund, Civic Center Fund, nineteen (19) Special Revenue Funds, and the Finance Authority Fund) had a combined ending fund balance of $149,681,000, an increase of $14,807,000. The primary reasons for this increase are an extraordinary gain of $3,624,000 derived from the Redevelopment loan repayment; $3,707,000 increase in assigned sales tax derived from Measure G; and a $2,250,000 increase in the unassigned fund balance due to expenditure savings and overall revenues (inclusive of the extraordinary gain) were 13% higher than budgeted. •The unassigned General Fund balance comprised $19,200,000, or 16%, of the total $121,824,000 balance and represented 34% of total final General Fund budgeted expenditures including transfers. •Total governmental activities debt decreased by $3,518,000 from $6,784,000 to $3,266,000. This was primarily due to a second loan installment payment ($1,125,000) for the Eisenhower Drive retention basin land purchased for drainage improvements and the transfer of the Housing Authority Provident and United States Department of Agriculture loans to Coachella Valley Housing Coalition ($1,909,000). (Note 5) Overview This discussion and analysis introduces the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. 5 Government-wide financial statements The government-wide financial statements provide a broad overview of the City’s finances. There are two statements – statement of net position and statement of activities, as described below. The statement of net position presents information on all City assets and deferred outflows of resources as well as liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs giving rise to the change, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, for example, earned but unused vacation leave. Both of these government-wide financial statements distinguish City functions, which are principally supported by taxes, fees, and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user charges (business-type activities). Governmental activities include general government, public safety, community services, community development and public works; business-type activities include the SilverRock Golf course operations. The government-wide financial statements include not only the City of La Quinta (known as the primary government), but also the La Quinta Financing Authority and the La Quinta Housing Authority. Although legally separate entities, they function for all practical purposes as City departments. The government-wide financial statements are listed in the table of contents under the Financial Section of this report. Fund financial statements A fund is a grouping of related accounts and is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure compliance with finance-related legal requirements. All of the City’s funds are aggregated into three categories: governmental funds, proprietary funds, and fiduciary funds. 6 Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus is narrower than the government-wide financial statements, it is useful to compare this information with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains twenty-three (23) individual governmental funds, which are distinguished between major and non-major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. There are four (4) major governmental funds: the General Fund, two (2) capital project funds, and one special revenue fund. Data from the other nineteen (19) governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements under Other Governmental Funds. The City adopts an annual budget for its General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with the adopted budget. The basic governmental fund financial statements can be found in the table of contents under the heading Basic Financial Statements. Proprietary funds Proprietary funds are broken down into enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business- type activities in the government-wide financial statements. The City maintains one (1) enterprise fund to account for the SilverRock Golf Course operations, which is considered to be a major fund. Internal service funds are used to allocate costs among the City’s various functions. The City has four (4) internal service funds: equipment replacement, information technology systems, park equipment and facilities, and insurance. Because these four (4) services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial 7 statements. Individual fund data for the internal service funds is provided in the form of combining statements on the Combining and Individual Fund Statements. The basic proprietary fund financial statements are listed in the table of contents under Proprietary Funds: Statement of Net Position, Statement of Revenues, Expenses and Changes in Fund Net Position, and Statement of Cash Flows. Fiduciary funds Fiduciary funds, also called agency funds, are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City reports on two fiduciary funds: 1) Successor Agency Trust which provides for activities associated with the dissolution of the former Redevelopment Agency, and 2) Defined Contribution Pension Trust established to provide retirement benefits. The basic fiduciary fund financial statements are listed in the table of contents under Fiduciary Funds: Statement of Net Position – Fiduciary Funds and Changes in Net Position – Fiduciary Funds. Notes to the financial statements The notes to the financial statements provide information that is essential to obtain a full understanding of the data provided in the government-wide and fund financial statements. These notes are listed in the table of contents under Notes to Basic Financial Statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents the combining statements referred to earlier in connection with non-major governmental funds, internal service funds, and agency funds. The non-major governmental funds’ combining statements are presented immediately following the Required Supplementary Information while the combined statements for the internal service funds and agency funds are presented following the budgetary comparison schedules for the debt service funds. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $719,452,000 at the close of the 2017/18, which is $6,766,000 more than the previous year. This increase is primarily attributed to an increase of unrestricted net position for governmental activities. 8 The largest portion of the City’s Net Position ($554,499,000 or 77% for 2017/18 and $560,876,000 or 79% for 2016/17) reflects investment in capital assets (e.g., land, buildings; machinery, and equipment), net of related debt. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. However, it should be noted that the resources needed to repay the related debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate debt. City of La Quinta Net Position Current and other assets 182,401,166 197,620,032 0.083 (4,794,773) (4,845,320) 0.011 177,606,393 192,774,712 0.085 Capital assets 521,084,650 510,913,594 (0.020) 43,836,868 43,585,880 (0.006) 564,921,518 554,499,474 (0.018) Total Assets 703,485,816 708,533,626 0.007 39,042,095 38,740,560 (0.008) 742,527,911 747,274,186 0.006 Deferred outflows of resources 3,023,443 5,190,412 0.717 - - - 3,023,443 5,190,412 0.717 - - - Current liabilities 13,610,469 14,789,716 0.087 346,193 357,892 0.034 13,956,662 15,147,608 0.085 Non-current liabilities 18,534,952 17,259,349 (0.069) - - - 18,534,952 17,259,349 (0.069) Total Liabilities 32,145,421 32,049,065 (0.003) 346,193 357,892 0.034 32,491,614 32,406,957 (0.003) Deferred inflows of resources 374,366 605,946 0.619 - - - 374,366 605,946 0.619 Net Position: Net investment in capital assets 517,039,487 510,913,594 (0.012) 43,836,868 43,585,880 (0.006) 560,876,355 554,499,474 (0.011) Restricted 38,824,860 39,263,604 0.011 - - - 38,824,860 39,263,604 0.011 Unrestricted 118,125,125 130,891,829 0.108 (5,140,966) (5,203,212) 0.012 112,984,159 125,688,617 0.112 Total Net Position 673,989,472 681,069,027 0.011 38,695,902 38,382,668 (0.008) 712,685,374 719,451,695 0.009 Total by Fiscal Year % Change20172018 Governmental Activities Business-Type Activities% Change % Change2017201820172018 An additional portion of the City's net position ($39,264,000 or 5% in 2018 and $38,825,000 or 5% in 2017) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted Net Position $125,689,000 (17%) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of 2017/18, the City has positive balances in all three categories of Net Position, both for the government as a whole, as well as for its separate governmental activities; however, the business type Unrestricted Net Position had a deficit in its net position of $5,203,000, which is approximately $62,000 more than 2016/17. SilverRock’s negative unrestricted net position reflects the outstanding $5.4 million advance from the General Fund which is decreased by cash, deposits and receivables on hand to meet current obligations. Governmental activities Governmental activities Net Position increased by $7,400,000 accounting for a 1% percent change in the Net Position from the previous year. Key elements of these changes are as follows: 9 City of La Quinta Changes in Net Position •Revenues overall increased by $11,736,000 with the largest increase ($10,490,000) being Other Taxes which includes Measure G transaction and use sales tax. Additional increases include property taxes - $366,000, investment income - $361,000, miscellaneous revenue - $189,000, and motor vehicle in lieu revenue - $128,000. These increases were offset by decreases totaling $1,928,000 for operating grants. Grant revenues will be recognized in 2018/19 as projects are completed. •Expenses for Governmental Activities increased by $12,363,000 (a 25% increase when compared to 2016/17). Increases were realized in each expense category with the exception of public safety. As noted earlier Governmental Activities include 23 individual governmental funds and include capital asset activity allocated on a percentage basis by department. Additional information on capital asset activity distribution can be found on Note 4. PROGRAM REVENUES: Charges for Services 2,604,623$ 3,473,058$ 868,435$ 3,446,340$ 3,567,718$ 121,378$ 6,050,963$ 7,040,776$ 989,813$ Operating Grants and Contributions 6,187,803 4,259,916 (1,927,887) - - - 6,187,803 4,259,916 (1,927,887) Capital Gains and Contributions 3,316,153 4,455,060 1,138,907 - - - 3,316,153 4,455,060 1,138,907 - GENERAL REVENUES & TRANSFERS - Property Taxes 15,521,335 15,887,015 365,680 - - - 15,521,335 15,887,015 365,680 Other Taxes 22,260,550 32,750,611 10,490,061 - - - 22,260,550 32,750,611 10,490,061 Investment Income 442,710 803,654 360,944 2,028 3,511 1,483 444,738 807,165 362,427 Motor Vehicle In Lieu 3,813,213 3,941,348 128,135 - - - 3,813,213 3,941,348 128,135 Miscellaneous 460,614 649,566 188,952 - - - 460,614 649,566 188,952 TOTAL REVENUES 54,607,001 66,220,228 11,613,227 3,448,368 3,571,229 122,861 58,055,369 69,791,457 11,736,088 EXPENSES: General Government 5,565,727 8,869,174 3,303,447 - - - 5,565,727 8,869,174 3,303,447 Public Safety 23,378,824 22,508,088 (870,736) - - - 23,378,824 22,508,088 (870,736) Planning & Development 2,882,321 4,352,134 1,469,813 - - - 2,882,321 4,352,134 1,469,813 Community Services 6,584,268 9,231,268 2,647,000 - - - 6,584,268 9,231,268 2,647,000 Public Works 10,927,160 15,580,975 4,653,815 - - - 10,927,160 15,580,975 4,653,815 Interest on Long-Term Debt 309,463 1,468,971 1,159,508 - - - 309,463 1,468,971 1,159,508 Golf Course - - - 3,965,644 4,318,463 352,819 3,965,644 4,318,463 352,819 TOTAL EXPENSES 49,647,763 62,010,610 12,362,847 3,965,644 4,318,463 352,819 53,613,407 66,329,073 12,715,666 TRANSFERS & EXTRAORDINARY ITEMS: Extraordinary Gain on Dissolution of RDA 7,344,050 3,624,121 (3,719,929) - - - 7,344,050 3,624,121 (3,719,929) T ransfers (401,300) (434,000) (32,700) 401,300 434,000 32,700 - - - Increase in Net Position 11,901,988 7,399,739 (4,502,249) (115,976) (313,234) (197,258) 11,786,012 7,086,505 (4,699,507) Net Position - Beginning 662,087,484 673,669,288 11,581,804 38,811,878 38,695,902 (115,976) 700,899,362 712,365,190 11,465,828 NET POSITION - ENDING 673,989,472$ 681,069,027$ 7,079,555$ 38,695,902$ 38,382,668$ (313,234)$ 712,685,374$ 719,451,695$ 6,766,321$ 2017 2018ChangeChange Change Total by Fiscal YearBusiness-Type ActivitiesGovernmental Activities 2017 2018 2017 2018 10 •Of this increase, one-time expenses included: establishing the Other Post- Employment Benefit Trust account ($1,523,000) and a $10,202,000 fixed asset disposal expense related to the transfer of ownership for Washington Street Apartments. •The General Fund contributed $434,000 to the business-type activities of the golf course. Funds were utilized to support operations per the adopted budget. Business-type activities This was the thirteenth full year of operations for the SilverRock Golf fund since the golf course opened in 2005. Charges for services primarily consisted of green fees which totaled $3,568,000, $121,000 greater than the previous year, with golf course expenses of $4,318,000, which were $353,000 or 9% more than the previous year. After transfers in, the net position decreased by $313,000. Expenditure increases included a $126,000 increase in management services, an increase of $77,651 in rental payments, and increased expenses related to the purchase of merchandise for sale. In 2017/18, the General Fund transferred $434,000 to the SilverRock Golf fund to support operations. The total outstanding advance due to the General Fund from the inception of the Golf Course opening to June 30, 2018 is $5,469,000. Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds - The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of 2017/18, the City's governmental funds reported combined ending fund balances of $149,681,000 as follows: 11 City of La Quinta Governmental Fund Balances Category General Fund Percent All Other Funds Percent Total Funds Percent Nonspendable 52,976,449$ 44%-$ 0% 52,976,449$ 36% Restricted - 0% 39,263,604 141% 39,263,604 26% Committed 29,726,500 24%- 0% 29,726,500 20% Assigned 19,921,112 16%- 0% 19,921,112 13% Unassigned 19,199,506 16% (11,405,877) -41% 7,793,629 5% TOTAL 121,823,567$ 100% 27,857,727$ 100% 149,681,294$ 100% Governmental fund balances ended the year totaling $149,681,000, an increase of $14,806,000 in comparison with the prior years’ ending balance of $134,875,000. These collective fund balances include the General Fund, Housing Authority, Financing Authority, Capital Improvement Fund, Civic Center Fund, and various Special Revenue funds. Nonspendable Nonspendable reserves are $52,976,000 or 36%; these reserves are not available to fund operating expenditures because they are in the form of land and receivables. Restricted $39,264,000 (26%) are restricted fund balances, which are the result of external limitations on spending. The Restricted funds such as Measure A, which can only be used for transportation; Gas Tax Fund, restricted for street related purposes; or Housing Funds, restricted for housing activities to preserve and produce affordable housing. Committed $29,727,000 (20%) are committed fund balances which are the result of self-imposed limitations established by the City Council. The City adopted a new Reserve Policy in May 2018 which established three additional General Fund committed reserve categories including: Economic Disaster Reserve, Capital Replacement Reserve, and a Pension Trust Reserve. The Post-Retirement Health Benefits Trust was established in 2017/18 with $1,523,000, which removed this 2016/17 committed reserve category. Assigned Assigned funds are constrained by the City’s intent to use them for specific purposes and represent a total of $19,921,000 (13%) of the total fund balance. $4,997,000 represents funds for approved Capital Projects carryovers for multi-year projects. Available Measure G sales tax revenue ended the year at $5,170,000. $9,754,000 represents funds held in trust with the County of Riverside for fire services. Unassigned The remaining fund balance or $7,794,000 represents unassigned fund balances or the residual net resources after taking into consideration the other classifications. The Civic Center fund accounted for $7.1 million of the $11.3 million negative 12 unassigned balance in all other funds. This amount represents an advance due to the General Fund and is included in the General Fund nonspendable fund balance. General Fund The General Fund is the City’s chief operating fund. At the end of the 2017/18, the unassigned fund balance was $19,200,000 while total fund balance was $121,824,000. The General Fund balance increased by $14,361,000 in 2017/18. Key factors were: •The change in non-spendable reserves was primarily due to the Last and Final Recognized Obligation Payment Schedule (ROPS) approved by the Department of Finance in November 2017, which resulted in an interest rate increase from 3% to 4% since the inception of the Redevelopment Agency loan. The due from other governments ($29,612,000) represents the principal ($20,693,000) and interest ($8,919,000) owed to the General Fund (80% of loan repayments). •Committed reserves increased by $7.4 million due to: a.) an increase in cash flow reserve of $866,000 (previously working capital reserve), b.) the establishment of a new capital replacement reserve with initial funding of $5 million ($1 million from former Emergency Reserves), and c.) an increase in carryovers of $2 million. In addition, a Post-Retirement Health Benefit Trust was established and funded with $1,523,000 and a new commitment of $2 million was made to establish a Pension Trust during 2018/19. New commitments were funded with unassigned reserves. •An increase of $4.2 million in assigned reserves was primarily due to Measure G sales tax revenue ($3,707,000) and fire services trust ($383,000). •Assigned to public safety represents property tax accumulated and held in trust by the County of Riverside for fire protection, disaster preparedness and response, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assists (the County and City negotiated an agreement wherein the County fire service property tax revenue generated in the two former City redevelopment project areas is pledged to the City to fund the aforementioned services). This portion of assigned fund balance as of June 30, 2018 is $9,754,000. •Additional revenue, expenditures savings, and the RDA loan repayment for 17/18 ($2,442,000) are reflected in the increase of $2.3 million to unassigned reserves. This increase was offset by additional funding to committed reserves as outlined above. •The General Fund revenues overall were $6,885,000 or 13% higher than budgeted. The increased revenue is attributable to higher collection of property, sales, and hotel taxes. Combined taxes collected were $2.8 million over budget. In addition, the extraordinary gain (RDA loan repayment and interest earned) of $2.9 million was not budgeted; these funds are recognized in unassigned reserves and reduce nonspendable reserves each year. Miscellaneous revenue included two TOT mitigation measure payments from Legacy Villas ($173,000 for 2016/17 received in 2017/18). 13 •An extraordinary gain of $2,899,000 is attributed to the Department of Finance’s approved increase in the quarterly interest rate on the City General Fund loan repayment (from 3% to 4%, since the inception of the loan in November 2006) and the $2,442,000 principal loan repayment in 2017/18. 80% of the extraordinary gain is recognized in the General Fund and 20% in the Housing Authority Fund. •Actual expenditures were $12,232,000 less than the final budget, but $3,552,000 higher than 2016/17 expenditures. Expenditure savings of $7,183,000 were carried over into 2018/19 for continuing appropriations related to operations and Capital Improvement Projects (CIP). Housing Authority Fund The Housing Authority Fund is used to account for the activities of the Housing Authority; the Housing Authority invests in programs and projects that preserve and increase the supply of affordable housing in the City. The fund balance decreased by $40,000 to end the year at $21,690,000. The decrease is largely attributed to the following: An extraordinary gain of $725,000 attributed to the Department of Finance’s approved increase in the quarterly interest rate on the City General Fund loan repayment (from 3% to 4%, since the inception of the loan in November 2006) and $610,000 principal loan repayment received in 2017/18. These gains were offset by one-time decreases in revenue and an increase of expenditures both related to the disposition of Washington Street Apartments, which remained affordable housing units, with ownership transferred to the Coachella Valley Housing Coalition. Capital Improvement Fund The Capital Improvement Fund is primarily used to record the expenditures for capital projects. The fund had forty two (42) active Capital Improvement Projects budgeted during 2017/18. The five most active projects were: Citywide drainage improvements ($1,443,000) Pavement Management Plan street improvements ($1,091,000) Madison Street median landscape improvements ($909,000) Eisenhower Drive at Montezuma Roundabout ($650,000) North La Quinta landscape renovations ($641,000) 14 Civic Center Fund The Civic Center fund is primarily used to collect developer impact fees for the 2004 City Hall expansion and to fund a portion of the debt service on the original City Hall construction. The City Hall expansion was completed in 2007/08 and the final repayment of the original City Hall construction bonds is scheduled in 2018/19. A $7.1 million advance from the General Fund is outstanding at the end of 2017/18. Proprietary funds The City of La Quinta's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The financial activities of the City enterprise fund are addressed in the discussion of the City’s business-type activities. In addition, the City has four (4) internal service funds to accumulate resources for equipment and vehicle replacement, information technology, insurance, and park equipment and facility replacement. General Fund Budgetary Highlights Revenue appropriations and transfers in increased by $3,811,000 between the original ($48,552,000) and final amended budget ($52,363,000). The main component of the increase was due to Measure G sales tax revenue which increased by $3,900,000. Expenditure appropriations and transfers out increased by $8,938,000 between the original ($48,181,000) and final amended budget ($57,119,000). Following are the primary changes: •$4,860,000 in carryover appropriations from prior fiscal years to 2017/18 to fund capital improvement projects as approved by City Council •$1,523,400 added for the establishment of a Post-Retirement Health Benefits Trust using previously committed General Fund reserves •$2,000,000 added from unassigned reserves intended for land acquisition and building improvements, which is being carried over to 2018/19. 15 Capital Asset and Debt Administration Capital assets The City’s capital assets for its governmental and business-type activities as of June 30, 2018, were $554,499,000 (net of accumulated depreciation). This includes land, right of way, buildings and improvements, machinery and equipment, streets and bridges, and construction in progress. The investment in capital assets decreased by $10,422,000 in 2017/18 primarily due to the disposition of Washington Street Apartments and depreciation expense. The following chart lists the asset categories for governmental and business like activities net of depreciation: City of La Quinta Capital Assets (net of depreciation) 2017 2018 2017 2018 2017 2018 Land 74,316,674 66,594,534 39,712,955 39,712,955 114,029,629 106,307,489 Buildings & Improvements 44,119,422 40,659,592 3,771,368 3,556,822 47,890,790 44,216,414 Equipment & Furniture 1,028,468 1,012,039 352,545 316,102 1,381,013 1,328,141 Vehicles 572,048 1,000,246 - - 572,048 1,000,246 Software - - - - - - Infrastructure 391,078,543 387,495,409 - - 391,078,543 387,495,409 Construction in Progress 9,969,495 14,151,774 - - 9,969,495 14,151,774 TOTAL 521,084,650 510,913,594 43,836,868 43,585,879 564,921,518 554,499,473 Governmental Activities Business-Type ActivitiesDescription Total By Fiscal Year Major capital asset events included under Governmental Activities included the following:  Recording infrastructure improvements, street improvements, street right of way, street sidewalks and curbs and gutters, traffic signals, and street medians  Washington Street Apartments transfer of ownership $10,202,000 Business-type activities The Golf Course capital asset balance at June 30, 2018, was $43,586,000, net of accumulated depreciation. The balance decreased by $251,000 reflects accumulated depreciation expensed in 2017/18. Additional information on the City of La Quinta’s capital assets can be found in Note 4 to the financial statements. 16 Long-term debt At the end of 2017/18, the City governmental funds had total outstanding debt of $3,266,000. Of the total amount, $650,000 represents the outstanding principal for the 1996 Lease Revenue Bonds (Civic Center construction and improvements), and a $1,125,000 loan balance for the Eisenhower Drive retention basin land acquisition (which will be retired in 2018/19). City of La Quinta Outstanding Debt The total outstanding debt decreased by $3,518,000 during 2017/18, due to a second installment payment of $1,125,000 for land acquisition (Eisenhower Drive retention basin), lease revenue bond principal payment of $615,000, and a decrease of $1,909,000 is for Washington Street Apartments long-term debt transferred to the Coachella Valley Housing Coalition as part of the property disposition. Additional information on long-term debt can be found in Note 5 of the financial statements. Requests for Information This financial report is designed to provide a general overview of the City’s finances. Questions concerning this information or requests for additional information should be addressed to the City of La Quinta, Karla Campos, Finance Director, 78-495 Calle Tampico, La Quinta, CA, 92253, by telephone at 760-777-7703, or by email at kcampos@laquintaca.gov. Debt Type:2017 2018 Capital Leases 530,163$ 667,035$ Compensated Absences 830,430 823,842 Land Acquisition Note Payable 2,250,000 1,125,000 Loans Payable 1,908,669 - Revenue Bonds 1,265,000 650,000 TOTAL 6,784,262$ 3,265,877$ Governmental Activities This page left blank intentionally. CITY OF LA QUINTA, CALIFORNA STATEMENT OF NET POSITION JUNE 30, 2018 See accompanying notes to basic financial statements. 17 Governmental Business-Type Activities Activities Total Assets: Cash and investments 112,387,200$ 242,814$ 112,630,014$ Receivables: Accounts 907,796 58,517 966,313 Taxes 2,829,015 -2,829,015 Notes and loans 23,013,023 -23,013,023 Accrued interest 3,969,350 1,212 3,970,562 Internal balances 5,468,718 (5,468,718) - Prepaid costs 733,789 -733,789 Deposits - 250,000 250,000 Due from other governments 39,991,141 -39,991,141 Inventories - 70,855 70,855 Land held for resale 8,320,000 -8,320,000 Capital assets not being depreciated 366,233,651 39,712,955 405,946,606 Capital assets, net of depreciation 144,679,943 3,872,925 148,552,868 Total Assets 708,533,626 38,740,560 747,274,186 Deferred Outflows of Resources: Deferred amounts related to OPEB 1,523,400 -1,523,400 Deferred amounts related to pensions 3,667,012 -3,667,012 Total Deferred Outflows of Resources 5,190,412 - 5,190,412 Liabilities: Accounts payable 3,300,811 322,392 3,623,203 Accrued liabilities 190,873 -190,873 Accrued interest 50,493 -50,493 Unearned revenue 1,761,096 -1,761,096 Deposits payable 7,835,467 35,500 7,870,967 Due to other governments 1,650,976 -1,650,976 Noncurrent liabilities: Due within one year 1,894,097 -1,894,097 Due in more than one year 1,371,780 -1,371,780 Total OPEB liability 1,380,949 -1,380,949 Net pension liability 12,612,523 -12,612,523 Total Liabilities 32,049,065 357,892 32,406,957 Deferred Inflows of Resources: Deferred amounts related to pensions 605,946 -605,946 Net Position: Net investment in capital assets 510,913,594 43,585,880 554,499,474 Restricted for: Planning and development projects 22,607,600 -22,607,600 Public safety 401,557 -401,557 Public works 2,033,627 -2,033,627 Capital projects 4,204,168 -4,204,168 Community services 10,016,652 -10,016,652 Unrestricted 130,891,829 (5,203,212) 125,688,617 Total Net Position 681,069,027$ 38,382,668$ 719,451,695$ Primary Government CITY OF LA QUINTA, CALIFORNIA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 18 Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: General government 8,869,174$ 883,153$ 986,125$ 187,282$ Public safety 22,508,088 367,848 12,299 161,824 Planning and development 4,352,134 724,499 85,880 1,167,783 Community services 9,231,268 442,656 1,973,481 - Public works 15,580,975 1,054,902 1,202,131 2,938,171 Interest on long-term debt 1,468,971 - - - Total Governmental Activities 62,010,610 3,473,058 4,259,916 4,455,060 Business-Type Activities: Golf Course 4,318,463 3,567,718 - - Total Primary Government 66,329,073$ 7,040,776$ 4,259,916$ 4,455,060$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Other taxes Motor vehicle in lieu - unrestricted Investment income Other Extraordinary Item Transfers Total General Revenues, Extraordinary Items and Transfers Change in Net Position Net Position at Beginning of Year, as restated Net Position at End of Year Program Revenues See accompanying notes to basic financial statements. 19 Governmental Business-Type Activities Activities Total (6,812,614)$ -$ (6,812,614)$ (21,966,117) - (21,966,117) (2,373,972) - (2,373,972) (6,815,131) - (6,815,131) (10,385,771) - (10,385,771) (1,468,971) - (1,468,971) (49,822,576) - (49,822,576) - (750,745) (750,745) (49,822,576)$ (750,745)$ (50,573,321)$ 15,887,015 - 15,887,015 10,752,788 - 10,752,788 18,956,985 - 18,956,985 1,977,179 - 1,977,179 345,187 - 345,187 718,472 - 718,472 3,941,348 - 3,941,348 803,654 3,511 807,165 649,566 - 649,566 3,624,121 - 3,624,121 (434,000) 434,000 - 57,222,315 437,511 57,659,826 7,399,739 (313,234) 7,086,505 673,669,288 38,695,902 712,365,190 681,069,027$ 38,382,668$ 719,451,695$ Primary Government Net (Expense) Revenue and Changes in Net Position CITY OF LA QUINTA, CALIFORNIA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2018 See accompanying notes to basic financial statements. 20 Housing Capital General Authority Improvement Civic Center Assets: Pooled cash and investments 74,640,227$ 12,080,017$ 1,448,073$ -$ Receivables: Accounts 707,510 155,486 44,800 - Taxes 2,684,368 - - - Notes and loans - 23,013,023 - - Accrued interest 147,881 3,758,290 - - Prepaid costs 90,657 - - - Due from other governments 31,169,018 7,402,927 448,702 - Due from other funds 364,115 - - - Advances to other funds 14,954,085 - - - Land held for resale 8,320,000 - - - Total Assets 133,077,861$ 46,409,743$ 1,941,575$ -$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable 2,511,587$ 16,553$ 438,249$ -$ Accrued liabilities 188,383 2,490 - - Unearned revenues 39,101 - 1,721,995 - Deposits payable 7,812,959 22,508 - - Due to other governments 78,419 - - - Due to other funds - - - - Advances from other funds - - - 7,103,053 Total Liabilities 10,630,449 41,551 2,160,244 7,103,053 Deferred Inflows of Resources: Unavailable revenue 623,845 24,678,005 128,893 - Fund Balances: Nonspendable: Prepaid costs 90,657 - - - Land held for resale 8,320,000 - - - Advances to other funds 14,954,085 - - - Due from other governments 29,611,707 - - - Restricted for: Planning and development projects - 21,690,187 - - Public safety - - - - Community services - - - - Public works - - - - Capital projects - - - - Committed to: Natural Disaster Reserve 7,400,000 - - - Economic Disaster Reserve 8,140,000 - - - Cash Flow Reserve 5,000,000 - - - Capital Replacement Reserve 5,000,000 - - - Pension Trust 2,000,000 - - - Carryovers 2,186,500 - - - Assigned for: Public safety (Note 13b)9,754,327 - - - Sales Tax Reserve 5,169,970 - - - Capital projects (Note 13b)4,996,815 - - - Unassigned 19,199,506 - (347,562) (7,103,053) Total Fund Balance 121,823,567 21,690,187 (347,562) (7,103,053) Total Liabilities, Deferred Inflows of Resources and Fund Balances 133,077,861$ 46,409,743$ 1,941,575$ -$ Special Revenue Funds Capital Projects Funds 21 Other Total Governmental Governmental Funds Funds 17,506,092$ 105,674,409$ -907,796 144,647 2,829,015 -23,013,023 45,121 3,951,292 -90,657 970,494 39,991,141 -364,115 -14,954,085 -8,320,000 18,666,354$ 200,095,533$ 213,216$ 3,179,605$ -190,873 -1,761,096 -7,835,467 1,572,557 1,650,976 6,057 6,057 2,382,315 9,485,368 4,174,145 24,109,442 874,054 26,304,797 -90,657 -8,320,000 -14,954,085 -29,611,707 917,413 22,607,600 401,557 401,557 10,016,652 10,016,652 2,033,627 2,033,627 4,204,168 4,204,168 -7,400,000 -8,140,000 -5,000,000 -5,000,000 -2,000,000 -2,186,500 -9,754,327 -5,169,970 -4,996,815 (3,955,262) 7,793,629 13,618,155 149,681,294 18,666,354$ 200,095,533$ This page left blank intentionally. CITY OF LA QUINTA, CALIFORNIA GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2018 See accompanying notes to basic financial statements. 22 Fund Balances of Governmental Funds 149,681,294$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of accumulated depreciation have not been included as current financial resources in governmental fund activity 495,932,742 Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds Bonds payable (650,000)$ Capital lease payable (23,300) Loans payable (1,125,000) Compensated absences (823,842) Net pension liability (12,612,523) Total OPEB liability (1,380,949) (16,615,614) Deferred outflows related to pensions 3,667,012 Deferred outflows related to OPEB 1,523,400 Deferred inflows related to pensions (605,946) Accrued interest payable has not been reported in the governmental funds (50,493) Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities.26,304,797 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities of the statement of net position 21,231,835 Net Position of Governmental Activities 681,069,027$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 23 Special Revenue Funds Housing Capital General Authority Improvements Civic Center Revenues: Taxes 44,116,002$ -$ -$ -$ Assessments - - - - Licenses and permits 1,394,820 - - - Intergovernmental 7,467,753 304,474 730,412 - Charges for services 1,279,864 - - - Use of money and property 643,171 959,554 (9,486) 17 Fines and forfeitures 375,390 - - - Developer participation - - 324,943 145,477 Miscellaneous 1,033,808 98,109 - - Total Revenues 56,310,808 1,362,137 1,045,869 145,494 Expenditures: Current: General government 7,733,978 - - - Public safety 22,403,445 - - - Planning and development 3,594,538 533,221 126,009 - Community services 3,256,837 259,000 - - Public works 1,223,285 - - - Capital outlay 850,408 - 7,390,754 - Debt service: Principal retirement - 51,988 - - Interest and fiscal charges -1,282,876 - 79,286 Total Expenditures 39,062,491 2,127,085 7,516,763 79,286 Excess (deficiency) of revenues over (under) expenditures 17,248,317 (764,948) (6,470,894) 66,208 Other Financing Sources (Uses): Transfers in 38,048 - 6,302,130 - Transfers out (5,824,567) - -- Total Other Financing Sources (Uses) (5,786,519) - 6,302,130 - Extraordinary Item: Successor Agency loan principal 2,899,296 724,825 - - Net change in fund balances 14,361,094 (40,123) (168,764) 66,208 Fund Balances, Beginning of Year, as restated 107,462,473 21,730,310 (178,798) (7,169,261) Fund Balances, End of Year 121,823,567$ 21,690,187$ (347,562)$ (7,103,053)$ Capital Projects Funds 24 Other Total Governmental Governmental Funds Funds 815,248$ 44,931,250$ 950,541 950,541 -1,394,820 4,052,620 12,555,259 -1,279,864 795,427 2,388,683 -375,390 1,064,208 1,534,628 64,140 1,196,057 7,742,184 66,606,492 3,133 7,737,111 104,643 22,508,088 56,821 4,310,589 1,720,246 5,236,083 2,922,850 4,146,135 774,699 9,015,861 615,000 666,988 98,209 1,460,371 6,295,601 55,081,226 1,446,583 11,525,266 1,092,162 7,432,340 (1,950,540) (7,775,107) (858,378) (342,767) -3,624,121 588,205 14,806,620 13,029,950 134,874,674 13,618,155$ 149,681,294$ CITY OF LA QUINTA, CALIFORNIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 25 Net Change in Fund Balances - Total Governmental Funds 14,806,620$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Adjustments for capital outlay, net of asset deletions and the net depreciation expense is reported in the governmental activities.(10,095,613) This issuance of long-term debt liabilities provides current financial resources in the governmental funds, but issuing debt increases the long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental fund, but the repayment reduces long-term liabilities in the statement of net position Principal repayments 615,000 Capital lease activity 26,620 Loan repayments 3,033,669 3,675,289 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.(7,953) Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.6,588 Governmental funds report OPEB contributions as expenditures. However, in the Statement of Activities, OPEB expense is measured as the change in total OPEB liability and the amortization of deferred outflows related to OPEB. This amount represents the net change in OPEB related amounts.1,339,227 Pension expense recognizes the change in net pension liability and therefore is not recognized (1,326,436) under the current resources measurement and (decreases)/increases from net position. Revenues reported as unavailable revenue in the governmental funds are recognized (676,739) as operating contributions and grants in the statement of activities Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with (321,244) governmental activities 7,399,739$ Change in net position of governmental activities CITY OF LA QUINTA, CALIFORNIA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2018 See accompanying notes to basic financial statements. 26 Business-Type Governmental Activities Activities Enterprise Funds Internal Service Golf Course Funds Assets: Current: Cash and investments 242,814$ 6,712,791$ Receivables: Accounts 58,517 - Accrued interest 1,212 18,058 Prepaid costs - 643,132 Deposits 250,000 - Inventories 70,855 - Total Current Assets 623,398 7,373,981 Noncurrent: Capital assets - net of accumulated depreciation 43,585,880 14,980,852 Total Assets 44,209,278 22,354,833 Liabilities: Current: Accounts payable 322,392 121,206 Deposits payable 35,500 - Due to other funds - 358,057 Current portion of capital leases - 107,450 Total Current Liabilities 357,892 586,713 Noncurrent Liabilities: Advances from other funds 5,468,718 - Long-term portion of capital leases - 536,285 Total Liabilities 5,826,610 1,122,998 Net Position: Net investment in capital assets 43,585,880 14,337,117 Unrestricted (5,203,212) 6,894,718 Total Net Position 38,382,668$ 21,231,835$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 27 Business-Type Governmental Activities Activities - Enterprise Funds Internal Golf Course Service Funds Operating Revenues: Sales and service charges 3,567,718$ 2,603,142$ Operating Expenses: Administration and general 42,113 484,710 Fuel and oil - 54,198 Maintenance and parts - 182,283 Contract services 3,860,634 622,469 Software and supplies - 937,994 Depreciation expense 250,989 841,327 Other 92,871 - Total Operating Expenses 4,246,607 3,122,981 Operating Income (Loss) (678,889) (519,839) Nonoperating Revenues (Expenses): Interest revenue 3,511 53,071 Miscellaneous revenues - 17,365 Interest expense (71,856) (647) Loss on disposal of capital assets - 220,039 Total Nonoperating Revenues (Expenses) (68,345) 289,828 Income (Loss) before transfers (747,234) (230,011) Transfers in 434,000 - Transfers out - (91,233) Total Transfers 434,000 (91,233) Changes in Net Position (313,234) (321,244) Net Position, Beginning of the Year 38,695,902 21,553,079 Net Position at End of Year 38,382,668$ 21,231,835$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 28 Business-Type Governmental Activities- Activities- Enterprise Funds Internal Golf Course Service Funds Cash Flows from Operating Activities: Cash received from customers and users 3,566,280$ -$ Cash received from interfund services provided -2,602,013 Cash payments to suppliers for goods and services (3,991,405) (2,285,869) Net Cash Provided by (Used for) Operating Activities (425,125) 316,144 Cash Flows from Non-Capital Financing Activities: Cash transfers in 434,000 - Other receipts 3,986 Advance from other funds 71,856 - Net Cash provided by Non-Capital Financing Activities 505,856 3,986 Cash Flows from Capital and Related Financing Activities: Capital contributions - Acquisition and construction of capital assets -(602,392) Interest paid on capital debt (71,856) (647) Proceeds from sales of capital assets -220,039 Net Cash Provided by (Used for) Capital and Related Financing Activities (71,856) (383,000) Cash flows from investing activities: Interest received on investments 2,750 (33,167) Net Increase (Decrease) in Cash and Cash Equivalents 11,625 (96,037) Cash and Cash Equivalents at Beginning of Year 231,189 6,808,828 Cash and Cash Equivalents at End of Year 242,814$ 6,712,791$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF CASH FLOWS, (CONTINUED) PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 29 Business-Type Governmental Activities- Activities- Enterprise Funds Internal Golf Course Service Funds Reconciliation of Operating Income to Net Cash Provided by (Used for) Operating Activities: Operating income (loss) (678,889)$ (519,839)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 250,989 841,327 (Increase) decrease in accounts receivable (1,438) - (Increase) decrease in inventories (10,743) - (Increase) decrease in due from other governments 3,257 - (Increase) decrease in prepaid expense -43,497 Increase (decrease) in accounts payable 12,163 97,117 Increase (decrease) in accrued liabilities (464)(1,931) Increase (decrease) due to other funds -(144,027) Total Adjustments Net Cash Provided by (Used for) by Operating Activities (425,125)$ 316,144$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 See accompanying notes to basic financial statements. 30 Pension Trust Private-Purpose Fund Trust Fund Successor Agency Supplemental Agency of the Funds Pension Plan former RDA Assets: Cash and investments 171,794$ 115,894$ 43,949,992$ Receivables: Notes and loans - - 1,721,526 Accrued interest 77 310 112,648 Prepaid asset - - 541,760 Due from other governments - - 1,572,557 Restricted assets: Cash and investments with fiscal agents - - 2,435 Total Assets 171,871$ 116,204$ 47,900,918$ Deferred Outflows of Resources: Deferred charge on refunding - 10,883,653 Liabilities: Accounts payable - - 45,431 Accrued interest - - 3,058,466 Deposits payable 171,871 - - Long-term liabilities: Due in one year - - 11,473,066 Due in more than one year - - 230,726,112 Total Liabilities 171,871$ - 245,303,075 Net Position (Deficit): Restricted for pensions 116,204$ Held in trust for private purposes (186,518,504)$ CITY OF LA QUINTA, CALIFORNIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 See accompanying notes to basic financial statements. 31 Pension Trust Private-Purpose Fund Trust Fund Successor Supplemental Agency of the Pension Plan Former RDA Additions: Taxes -$ 20,726,954$ Net investment income 776 127,665 Total Additions 776 20,854,619 Deductions: Administrative expenses 12,833 190,979 Contractual services - 2,441,836 Interest and fiscal charges - 9,787,286 Total Deductions 12,833 12,420,101 Extraordinary Item: Successor Agency loan principal - (3,624,121) Changes in Net Position (12,057) 4,810,397 Net Position/(Deficit) - Beginning of the Year 128,261 (191,328,901) Net Position/(Deficit) - End of the Year 116,204$ (186,518,504)$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 32 Note Description Page Number 1 Summary of Significant Accounting Policies 33 2 Cash and Investments 44 3 Notes Receivable 48 4 Capital Assets 49 5 Changes in Long-Term Liabilities – Governmental Activities 51 6 Interfund Receivables and Payables 55 7 Interfund Transfers 56 8 Defined Benefit Pension Plan 56 9 Defined Contribution Plans 60 10 Other Post Employment Benefit Plan (OPEB) 60 11 Risk Management 63 12 Fund Balance 64 13 Golf Course Management Agreement 66 14 Construction Commitments 67 15 Reimbursement Agreements 67 16 Successor Agency Trust for Assets of Former Redevelopment Agency 68 17 Extraordinary Item 74 18 Prior Period Adjustment 74 CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 33 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Reporting Entity The City of La Quinta (City) was incorporated May 1, 1982, under the general laws of the State of California. In November 1996, the City became a charter City. The City operates under the Council – Manager form of government. The City provides many community services including public safety, highway and street maintenance, health and social services, cultural and leisure services, public improvements, planning and zoning services, and community development services. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the City and its component units, which are entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. All of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and so data from these units are reported with the interfund data of the primary government. The following organizations are considered to be component units of the City: City of La Quinta Public Financing Authority The La Quinta Public Financing Authority (Financing Authority) was established pursuant to a Joint Exercise of Powers Agreement dated November 19, 1991, between the City and the Former Redevelopment Agency (now Successor Agency). The purpose of the Financing Authority is to provide financing necessary for the construction of various public improvements through the issuance of debt. Although the Financing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Financing Authority and the management of the City has operational responsibility for the Financing Authority. Separate financial statements of the Financing Authority are not prepared. City of La Quinta Housing Authority The La Quinta Housing Authority (Housing Authority) was established pursuant to California Housing Authorities Law (Health and Safety Code Sections 34200 et seq.) on September 15, 2009. The purpose of the Housing Authority is to provide safe and sanitary housing opportunities for La Quinta residents. Although the Housing Authority is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Housing Authority and the management of the City has operational responsibility for the Housing Authority. Separate financial statements of the Housing Authority are not prepared. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 34 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Government-Wide and Fund Financial Statements The basic financial statements of the City are composed of the following:  Government-wide financial statements  Fund financial statements  Notes to the financial statements Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting City’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government- wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and proprietary funds. Fiduciary statements include financial information for fiduciary funds. Fiduciary funds of the city primarily represent assets held by the City in a custodial capacity for other individuals or organizations. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 35 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Governmental Funds In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a 60-day availability period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed delivered tax revenues are recognized as revenues in the period in which the underlying exchange transaction on which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered “available spendable resources”, since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 36 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) c.Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. Proprietary Funds The City’s enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, all deferred outflows of resources, all liabilities, and all deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as an Other Financing Source. Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditures. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Fiduciary Funds The pension and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 37 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d.Major Funds, Internal Service Funds and Fiduciary Fund Types The City’s major governmental funds are as follows: General Fund – This fund is the primary fund of the City and is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Community Development, Police Services, Public Works, and Community Services. Housing Authority- This fund accounts for the combined housing activities of the Housing Authority in Project Areas 1 and 2 which promotes and provides for quality housing. Revenues will be provided from the receipts and collections of rents, notes and loans. All monies in the Housing Authority must be used in accordance with the applicable housing-related provisions of the California Housing Authorities Law. Capital Improvement Fund – This capital projects fund is used to account for the planning, design and construction of various capital projects throughout the City. Civic Center Fund – This fund accounts for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the Civic Center. The City’s major proprietary fund is as follows: Golf Course – This fund accounts for the activities of the SilverRock Golf Resort. Other fund types of the City are as follows: Debt Service Fund – This fund accounts for the servicing of long-term debt. Internal Service Funds: Equipment Replacement Fund – This fund accounts for equipment and vehicle maintenance and replacement services provided to other departments on a cost-reimbursement basis. Information Technology Fund – This fund is used to account for the acquisition for computer equipment, maintenance, and services to support information systems within the City. Costs are reimbursed by the benefiting departments. Park Equipment and Facilities Fund – This fund is used to account for the purchase and replacement of City owned park facility infrastructure. Costs are reimbursed by the benefiting departments. Insurance Fund – This fund accounts for City-wide insurances: liability, property, earthquake, workers compensation and risk management. Expenses are shared among departments on an allocation basis. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 38 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) d.Major Funds, Internal Service Funds and Fiduciary Fund Types (Continued) Fiduciary Funds: Agency Fund – This fund accounts for assets held by the City as an agent for assessment district bondholders. Pension Trust Fund – This fund accounts for the activities of the Supplemental Pension Savings Plan, which accumulates resources for pension benefit payments to qualified government employees. Private-Purpose Trust Fund – This fund accounts for the assets and liabilities of the Former Agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the Former Agency are paid in full and assets have been liquidated. e.Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or Equity Cash and Investments For financial reporting purposes, investments are adjusted to their fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. All investments are valued at fair value. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance. Cash and Cash Equivalents For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary fund’s share in the City’s cash and investment pool. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the proprietary funds is considered cash and cash equivalents. Inventory Inventory is valued at cost using the first in/first out (FIFO) method. The City uses the consumption method of accounting for inventories. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 39 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or Equity (Continued) Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City utilizes the consumption method, in which prepaid items are accounted for in the period that the benefit was received. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Capital Assets include public domain (infrastructure) consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. Capital assets used in operations are depreciated over their estimated useful lives using the straight- line method in the government-wide financial statements and in the fund financial statements of the proprietary funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The following schedule summarizes capital asset useful lives: Building and improvements 10-30 years Equipment and furniture 3-20 years Vehicles 5-10 years Infrastructure 10-50 years Software 5-10 years Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 percent of assessed value, plus other increases approved by the voters. The property taxes are recorded initially in a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of La Quinta accrues only those taxes that are received from the County within ninety days after year-end. Lien date January 1 Levy date July 1 Due dates November 1 and February 1 Collection dates December 10 and April 10 CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 40 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) e.Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or Equity (Continued) Deferred Outflows/Inflows of Resources In addition to assets, the statements of net position and the governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. Governmental activities recorded deferred outflows of resources related to pensions and OPEB of $3,667,012 and $1,523,400 respectively. In addition to liabilities, the statements of net position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has reported items on the Governmental Fund Balance Sheet as unavailable revenues that were not received within the City’s availability period. Additionally Governmental activities recorded deferred inflows of resources related to pensions of $605,946. Compensated Absences Vacation and sick time is vested on a percentage based on number of years employed at the City. Maximum accumulation of sick and vacation is 40 and 60 days, respectively. Upon termination or retirement, permanent employees are entitled to receive compensation at their current base salary for all unused vacation leave. If an employee terminates with a minimum of two years’ service, the employee is entitled to receive 25 percent of the value of his unused sick leave. The percentage increases by 25 percent for each five-year period until the employee is entitled to 100 percent of the value of their unused sick leave. This will occur upon the completion of twenty years of continuous employment. The General Fund resources are used to pay for the accumulated benefits to employees. Long-Term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 41 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) e. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and Net Position or Equity (Continued) Fund Balance In the fund financial statements, governmental funds report the following fund balance classification: Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is by a resolution. Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. City Council is authorized to assign amounts to a specific purpose. The City Council authorizes assigned amounts for specific purposes pursuant to the policy- making powers granted through a resolution. Unassigned includes the residual amounts that have not been restricted, committed, or assigned to specific purposes. The general fund is the only fund that reports a positive unassigned fund balance. Fund Balance Flow Assumptions – governmental fund financial statements Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Net Position Flow Assumption – governmental and proprietary fund financial statements Sometimes the City of La Quinta will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 42 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) f.Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. g.New Accounting Pronouncements Adopted in the Current Year GASB Statement No. 75 – In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Statement 75 establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB, as well as for certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. The City implemented this Statement effective July 1, 2017. Effective in Future Fiscal Years The City is currently evaluating the potential impact of the following issued, but not yet effective, accounting standards. GASB Statement No. 83 – In November 2016, GASB issued Statement No. 83, Certain Asset Retirement Obligations. The objective of this Statement is to provide financial statement users with information about asset retirement obligations that were not addressed in GASB Standards by establishing uniform accounting and financial reporting requirements for these obligations. This Statement is effective for reporting periods beginning after June 15, 2018. GASB Statement No. 84 – In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement is effective for reporting periods beginning after December 15, 2018. GASB Statement No. 87 – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases; enhancing the comparability of financial statements between governments; and also enhancing the relevance, reliability (representational faithfulness), and consistency of information about the leasing activities of governments. This Statement is effective for reporting periods beginning after December 15, 2019. GASB Statement No. 88 – In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The objective of this Statement is to improve consistency in the information that is disclosed in the notes to government financial statements related to debt, including direct borrowings and direct placements, and to provide financial statement users with additional essential information about debt. This Statement is effective for reporting periods beginning after June 15, 2018. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 43 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) g. New Accounting Pronouncements (Continued) GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify accounting for certain interest costs. This Statement is effective for reporting periods beginning after December 15, 2019. GASB Statement No. 90 – In September 2018, the GASB issues Statement No. 90, Majority Equity Interests, an amendment of GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The Statement is effective for reporting periods beginning after December 15, 2018. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 44 II. DETAILED NOTES ON ALL FUNDS NOTE 2: CASH AND INVESTMENTS Cash and investments as of June 30, 2018, are classified in the accompanying financial statements as follows: Statement of Net Position: Cash and investments 112,630,014$ Statement of Fiduciary Net Position: Cash and investments 44,237,680 Cash and investments with fiscal agent 2,435 Total Cash and Investments 156,870,129$ Cash and investment as of June 30, 2018, consist of the following: Cash on hand 3,000$ Deposits with financial institutions 15,395,208 Investments 141,471,921 Total Cash and Investments 156,870,129$ Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Maximum Maximum Maximum Percentage Investment Investment Types Maturity Allowed in One Issuer U.S. Treasury Obligations 5 years None $30 million U.S. Agency Securities 5 years 30%20-30 million Local Agency Bonds 5 years 30%30 million California Local Agency Obligations 5 years 30%30 million Commercial Paper 90 days 15%5 million Certificates of Deposit 5 years 30%250,000 Negotiable Certificates of Deposits 5 years 30%250,000 Corporate Notes 5 years 10%5 million Investment Pools (Riverside County Pool)N/A None None Money Market Mutual Funds N/A 20%N/A Local Agency Investment Fund (LAIF)N/A N/A 50 million Investment Agreements 3 years 10%N/A CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 45 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short term and long term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity: 1 year Investment Type Total Or Less 1 to 3 years 3 to 5 years Certificates of Deposit 16,463,074$ 4,349,302$ 5,491,773$ 6,621,999$ Federal agency securities: Federal Farm Credit Bank 2,939,295 494,175 1,476,280 968,840 Federal National Mortgage Association 2,961,685 - 2,961,685 - Federal Home Loan Mortgage Corp 8,559,598 495,390 2,456,950 5,607,258 Federal Home Loan Bank 6,803,135 - 5,807,825 995,310 U.S. Treasury Notes 17,554,030 4,481,185 6,378,065 6,694,780 Corporate Notes 3,446,980 1,981,220 986,580 479,180 Local Agency Investment Fund 72,986,767 72,986,767 - - Riverside County Pool 9,754,327 9,754,327 Held by Fiscal Agent: Money Market Mutual Funds 3,030 3,030 - - Total 141,471,921$ 94,545,396$ 25,559,158$ 21,367,367$ Remaining Maturity (in Years) Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City's investment policy limits investments in commercial paper and money market mutual funds to those rated the highest rating as rated by Moody’s or Standard and Poor’s (S&P). Presented below are the S&P ratings as of year-end: CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 46 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Credit Risk (Continued) Investment Type Total AAA AA+AA- Federal Agency Securities 21,263,713$ -$ 21,263,713$ -$ Corporate Notes 3,446,980 2,474,830 479,180 492,970 Total 24,710,693 2,474,830$ 21,742,893$ 492,970$ Exempt from Credit Risk disclosure: U.S. Treasury Notes 17,554,030 Not rated: Certificates of Deposit 16,463,074 Local Agency Investment Pool 72,986,767 Riverside County Pool 9,754,327 Money Market Mutual Funds 3,030 Total investments 141,471,921$ Concentration of Credit Risk Investments in any one issuer that represent 5 percent or more of total City’s investments are as follows: Issuer Investment Type Reported Amount Percent of Porfolio Federal Home Loan Mortgage Corp Federal Agency Securities 8,559,598$ 6% Federal Home Loan Bank Federal Agency Securities 6,803,135 5% Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. As a public funds depository Wells Fargo maintains a public funds deposit collateralization program that is designed to comply with all applicable statutes and regulations governing public funds deposits, including pledge and perfection of collateral. Accounts holding public funds are labeled as such and trigger collateralization. Collateral needs are met based on the prior day close of business. However, same-day collateral requests may be accommodated upon request. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 47 NOTE 2: CASH AND INVESTMENTS (CONTINUED) Investment in Riverside County Pool The City is a voluntary participant in the Riverside County Pooled Investment Fund that is regulated by California Government Code Section 53646 and managed by the Riverside County Treasurer. The City’s investment in this pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at fair value. The balance available for withdrawal is based on the accounting records maintained by the County. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Deposits and withdrawals are made on the basis of $1 and not fair value. Accordingly, the City’s measurement of fair value of its investment with LAIF is based on uncategorized inputs, not defined as a level 1, level 2, or level 3 input. Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2018: Total 1 2 Investments: U.S. Treasury Notes 17,554,030$ 17,554,030$ -$ Federal Agency Securities 21,263,713 - 21,263,713 Corporate Notes 3,446,980 - 3,446,980 Certificates of Deposit 16,463,074 - 16,463,074 Total Leveled Investments 58,727,797 17,554,030$ 41,173,767$ Investments with uncategorized inputs: Local Agency Investment Fund 72,986,767 Riverside County Pool 9,754,327 Held by Fiscal Agent Money Market Mutual Funds 3,030 Total Investments 141,471,921$ Level CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 48 NOTE 3: NOTES RECEIVABLE In September 1994, the former redevelopment agency sold certain real property to LINC Housing for $2,112,847. The property was used to construct single-family homes and rental units to increase the City's supply of low and moderate income housing. The note bears interest at 6 percent per annum and is due in full on June 15, 2029. On February 1, 2012, this receivable was transferred to the Housing Authority, which took over the housing function of the former redevelopment agency upon dissolution. The balance at June 30, 2018, including accrued interest of $2,774,717 is $4,810,105. In February 2011, the former redevelopment agency entered into Disposition and Development Agreement with Coral Mountain Partners L.P. (“Coral Mountain”) to fund up to $29,000,000 for the construction of a low and moderate income apartment complex with an estimated completion date of the apartment complex of March 2014. The former redevelopment agency’s $29,000,000 loan is evidenced by a Promissory Note executed by Coral Mountain (“Note”). Interest on the outstanding note amount will bear simple interest of 1 percent. Principal and interest will be repaid on or before May 1st of each year from annual residual receipts as defined in the Note once the project is completed and may be repaid early if the property is refinanced, or if the property is transferred to another entity. On February 1, 2012, this receivable was transferred to the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution. As of June 30, 2018, the outstanding principal balance is $20,954,110 and the outstanding interest balance is $949,177. Other notes receivable as of February 1, 2012, included in the Housing Authority which took over the housing function of the former redevelopment agency upon dissolution totaled $23,525 at June 30, 2018. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 49 NOTE 4: CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2018, is as follows: Balance at Balance at July 1, 2017 Additions Deletions Transfers June 30, 2018 Governmental activities: Capital assets, not being depreciated: Land 74,316,674$ 613,122$ 8,335,262$ -$ 66,594,534 Right of way 284,928,794 558,549 - - 285,487,343 Construction-in-progress 9,969,495 7,565,886 195,608 (3,187,999) 14,151,774 Total Capital Assets, Not Being Depreciated 369,214,963 8,737,557 8,530,870 (3,187,999) 366,233,651 Capital assets, being depreciated: Buildings and improvements 74,640,811 58,531 2,736,127 746,504 72,709,719 Equipment and furniture 3,482,922 233,283 215,494 - 3,500,711 Vehicles 1,874,386 500,868 634,434 - 1,740,820 Infrastructure 221,445,816 - - 2,441,495 223,887,311 Total Capital Assets, Being Depreciated 301,443,935 792,682 3,586,055 3,187,999 301,838,561 Less accumulated depreciation for: Buildings and improvements 30,521,389 2,303,974 775,236 - 32,050,127 Equipment and furniture 2,454,454 249,712 215,494 - 2,488,672 Vehicles 1,302,338 72,670 634,434 - 740,574 Infrastructure 115,296,067 6,583,178 - - 121,879,245 Total Accumulated Depreciation 149,574,248 9,209,534 1,625,164 - 157,158,618 Total Capital Assets, Being Depreciated, Net 151,869,687 (8,416,852) 1,960,891 3,187,999 144,679,943 Governmental Activities Capital Assets, Net 521,084,650$ 320,705$ 10,491,761$ -$ 510,913,594 Depreciation expense was charged to the following functions in the Statement of Activities: General governments 653,918$ Planning and development 24,628 Community services 1,850,644 Public works 6,680,344 9,209,534$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 50 NOTE 4: CAPITAL ASSETS (CONTINUED) Capital asset activity for business-type activities for the year ended June 30, 2018, is as follows: Balance at Balance at July 1, 2017 Additions Deletions June 30, 2018 Business-Type activities: Capital assets, not being depreciated: Land 39,712,955$ -$ -$ 39,712,955 Capital assets, being depreciated: Buildings and improvements 6,636,465 - - 6,636,465 Equipment and furniture 2,379,238 - 332,526 2,046,712 Vehicles 20,348 - 20,348 - Software 20,255 - - 20,255 Total Capital Assets, Being Depreciated 9,056,306 - 352,874 8,703,432 Less accumulated depreciation for: Buildings and improvements 2,865,097 214,546 - 3,079,643 Equipment and furniture 2,026,693 36,443 332,526 1,730,610 Vehicles 20,348 - 20,348 - Software 20,255 - - 20,255 Total Accumulated Depreciation 4,932,393 250,989 352,874 4,830,508 Total Capital Assets, Being Depreciated, Net 4,123,913 (250,989) - 3,872,924 Business-Type Activities Capital Assets, Net 43,836,868$ (250,989)$ -$ 43,585,879 Depreciation expense was charged to the following functions in the Statement of Activities: Golf Course 250,989$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 51 NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES Changes in Long-Term Debt The following is a summary of changes in governmental long-term liabilities of the City for the fiscal year ended June 30, 2018: Balance at Balance Due within July 1, 2017 Additions Deletions June 30, 2018 One year City: Compensated absences payable 830,430$ 817,254$ 823,842$ 823,842$ 823,842$ Copier lease payable 49,920 -26,620 23,300 7,173 Dell Computer lease 14,699 -9,587 5,112 4,474 De Lage Landen Public Finance 37,916 -37,916 - - Fleet Vehicle Lease 427,628 293,332 82,337 638,623 107,450 Note payable - Eisenhower Dr. Property 2,250,000 -1,125,000 1,125,000 1,125,000 Housing Authority: Provident Loan 1,280,221 -1,280,221 - - U.S. Department of Agriculture 628,448 -628,448 - - Financing Authority: Revenue bonds 1,265,000 -615,000 650,000 650,000 6,784,262$ 1,110,586$ 4,628,971$ 3,265,877$ 2,717,939$ A description of individual issues of debt (excluding defeased bonds) outstanding as of June 30, 2018, is as follows: Copier Leases Payable In June 2013, the City entered into a 5-year lease agreement for photocopiers for $71,045 maturing in monthly increments of $1,456, with interest payable monthly at 8.47 percent. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. On April 1, 2015, the City leased an additional copier for $9,000 maturing in monthly increments of $1,728, with interest payable monthly at 8.47 percent. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2018, are as follows: Year Ending June 30, Total 2019 8,160$ 2020 8,160 2021 8,160 2022 680 Total Payments 25,160 Less amount representing interest (1,860) Outstanding Principal 23,300$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 52 NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES (CONTINUED) Dell Computer Lease Payable In April 2014, the City entered into a 5-year lease agreement for Dell computers for $90,629 maturing in annual increments ranging from $20,693 to $408, with interest payable annually at 4.79%. In August 2015, the City entered into another 5-year lease for Dell computers for $17,682 maturing in annual increments from $16,620 to $639, with interest payable annually at 4.07%. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2018, are as follows: Year Ending June 30, Total 2019 4,685$ 2020 664 Total Payments 5,349 Less amount representing interest (236) Outstanding Principal 5,113$ Technology Hardware Lease Payable In 2016, the City entered into a 3-year lease agreement for network firewall and switches for $113,748 maturing in three annual installments of $37,916, with no interest. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payments at the inception date. The lease was paid off in the current year. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 53 NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES (CONTINUED) Fleet Vehicle Lease In January of 2017 the City entered into a vehicle lease agreement with Enterprise Fleet Management with the goal of replacing all light duty vehicles within two years. Pool vehicles are also included in the replacement program and are utilized by multiple departments. In fiscal year 2017-18, 11 vehicles were replaced with five- year leases ranging from $26,926 to $42,233. This lease agreement qualifies as a capital lease for accounting purposes and therefore, has been recorded at the present value of the future minimum lease payment at the inception date. The minimum future lease obligations and the net present value of the lease payments as of June 30, 2018, are as follows: Year Ending June 30, Total 2019 107,450$ 2020 121,728 2021 136,016 2022 196,405 2023 77,024 Outstanding Principal 638,623$ Note Payable – Eisenhower Drive Property In March 2017, the City secured a note in the amount of $2,250,000 to fund the acquisition of property located on Eisenhower Drive to be used as a drainage retention basin. The note accrues interest at 3.5% and will be paid in two annual installments beginning in fiscal year 2017-18 of which the principal portion will be $1,125,000 each. 1996 Lease Revenue Refunding Bonds On November 15, 1996, the Financing Authority issued $8,790,000 of 1996 Lease Revenue Refunding Bonds to defease the remaining 1991 Local Agency Revenue Bonds in the amount of $8,200,000 and to provide funds for construction of remaining improvements to the La Quinta Civic Center site. The bonds consist of $3,630,000 of serial bonds and $5,150,000 of term bonds. The serial bonds will accrue interest at rates between 3.70 percent and 5.30 percent and principal amounts mature between October 1, 1997 and October 1, 2008, in amounts ranging from $285,000 to $380,000. The term bonds accrue interest at a rate of 5.55 percent and mature on October 1, 2018. A surety agreement has been purchased to satisfy the bond reserve requirement. There are certain limitations regarding the issuance of parity debt as further described in the official statement. The amount of principal outstanding at June 30, 2018, is $650,000. Year Ending June 30, Principal Interest 2019 650,000$ 18,038$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 54 NOTE 5: CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES (CONTINUED) Loans Washington Street Apartments In October 2008, the former redevelopment agency acquired the Washington Street Apartments for cash and the assumption of the following debt: Provident Bank Loan This loan was originally entered into with the previous owner of the Washington Street Apartments and Provident Bank for $1,696,000 in August 2001 at an 8.36 percent interest rate. In March 2018, the Washington Street Apartments were transferred to the Coachella Valley Housing Coalition and the remaining balance of the loan was paid off as part of the transfer of property. United States Department of Agriculture (USDA) Rural Development Promissory Note This promissory note was originally entered into with the previous owner of the Washington Street Apartments and USDA – Rural Development for $1,500,000 in November 1980 at a 10.00 percent interest rate. In March 2018, the Washington Street Apartments were transferred to the Coachella Valley Housing Coalition who assumed the remaining balance of the loan. NOTE 6: INTERFUND RECEIVABLES AND PAYABLES The composition of current interfund receivable and payable balances is as follows: Internal Service Non-Major Due from Other Funds Funds Governmental Total General Fund 358,057$ 6,057$ 364,114$ Due to Other Funds Interfund balances reflect short term borrowings for deficit cash balances at June 30, 2018. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 55 NOTE 6: INTERFUND RECEIVABLES AND PAYABLES (CONTINUED) The composition of non-current interfund receivable and payable balances as of June 30, 2018, is as follows: Civic Center Non-Major Advances to Other Funds Fund Golf Course Governmental Total General Fund 7,103,053$ 5,468,718$ 2,382,315$ 14,954,086$ Advances from Other Funds a) In September 2006, an advance up to $9,615,094 for the City Hall expansion from the General Fund to the Civic Center Developer Impact Fee Fund was approved. The Civic Center expansion has been completed and the amount of the advance outstanding as of June 30, 2018 was $7,103,053. The advance accrues interest based on the rate earned by the City investment pool average. b) As of June 30, 2018, the General Fund has advanced to the Golf Course fund $5,468,718. The advance accrues interest at the City’s investment pool rate and is to be repaid by the golf course out of future profits. c) In October 2009, an advance up to $2,033,687 for the Phase 1 of the Corporate Yard project from the General Fund to the Street and Park Maintenance Facility Funds was approved. As of June 30, 2018, the amount of the outstanding advance was $1,891,472. The advance accrues interest at the earnings rate of the City’s investment pool. d) In February 2003, the Redevelopment Agency Capital Projects PA No. 2 Fund advanced $1,350,131 to the Fire Facility Fund to provide funding for development of the City’s north fire station. On March 1, 2012 the outstanding advance of $925,192 was transferred from the former redevelopment agency to the General Fund with the former redevelopment agency receiving $925,192 in cash for the outstanding balance. The advance accrues interest at the earnings rate of the City’s investment pool funds. As of June 30, 2018, the remaining balance of the advance was $490,843. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 56 NOTE 7: INTERFUND TRANSFERS Non-Major Internal Transfers In:General Fund Governmental Service Fund Total General Fund -$ 38,048$ -$ 38,048$ Capital Improvements Fund 4,304,973 1,905,924 91,233 6,302,130 Non-major Governmental Funds 1,085,594 6,568 - 1,092,162 Golf Course Fund 434,000 - - 434,000 Total 5,824,567$ 1,950,540$ 91,233$ 7,866,340$ Transfer Out a) $38,048 was transferred to the General Fund from the Indian Gaming Grant Fund to reimburse the General Fund for expenditures within the City related to grant funding purposes. b) $4,304,973 was transferred from the General Fund to the Capital Improvement Fund to fund various capital projects. c) $1,905,924 was transferred to Capital Improvement Fund from various non-major funds whereby available external grant funding was received and appropriated first for various projects. d) $1,085,594 was transferred from the General Fund to various non-major funds to support various administrative operations and expenses within the City. e) $6,568 was transferred between non-major funds to repay the DIF loan liability. f) $434,000 was transferred from the General Fund to the Golf Course Fund to subsidize operations. g) $91,233 was transferred to the Capital Improvement Fund from the internal service funds to support various capital projects and preventative maintenance. NOTE 8: DEFINED BENEFIT PENSION PLAN Miscellaneous Plan Plan Description All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost- sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under these plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provision, assumption and membership information. Copies of the report can be found on the CalPERS website. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 57 NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED) Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2018 are summarized as follows: Tier I Tier II PEPRA On and after On and after On and after Hire date December 16, 1983 December 17, 2012 January 1, 2013 Benefit formula 2.5% @55 2% @60 2% @62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 52 and up Monthly benefits, as a % of eligible compensation 2% to 2.5% 2% to 2.5% 1% to 2% Required employee contribution rates 8.00%7.00%6.25% Required employer contribution rates 10.110%7.200%6.533% Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions are determined annually on an actuarial basis as of June 30th by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contributions to the pension plan were $1,061,439 for the year ended June 30, 2018. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2018, the City reported a liability of $12,612,523 for its proportionate share of the collective net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016, and rolled forward to June 30, 2017. The City’s proportion of the collective net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportion of the collective net pension liability as of June 30, 2016 and 2017 is as follows: Proportion- June 30, 2016 0.12567 % Proportion- June 30, 2017 0.12718 % Change- Increase (Decrease)0.00151 % For the year ended June 30, 2018, the City recognized pension expense of $2,293,242. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 58 NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED) At June 30, 2018, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date 1,061,439$ -$ Changes in assumptions 1,771,618 - Differences between expected and actual experience - 205,994 Net difference between projected and actual earnings on pension plan investments 433,740 - Change in employer's proportion 400,215 - Difference between the city's contribution and proportionate share of contributions - 399,952 Total 3,667,012$ 605,946$ The $1,061,439 reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30, 2019 572,374$ 2020 1,051,723 2021 633,049 2022 (257,520) 1,999,626$ Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2017 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2016 total pension liability. The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial methods and assumptions: Miscellaneous June 30, 2016 June 30, 2017 Discount Rate 7.15% Inflation 2.75% Projected Salary Increase Varies by Entry Age and Service Mortality Derived using CalPERS' Membership Data for all Fund Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection allowance Floor on Purchasing Power applies, 2.75% thereafter Entry-Age Normal Cost Method CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 59 NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED) Change of Assumptions: The discount rate of 7.15 percent used for the June 30, 2017 measurement date was decreased from 7.65 percent used for the June 30, 2016 measurement date. Discount Rate The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. In determining the long-term expected percent rate of return on pension plan investments, CalPERS took into account both short and long-term market return expectations as well as the expected pension fund cash flows. Based on the expected benefit payments of the Public Employees’ Retirement Fund, CalPERS indicated that a 19 year horizon was ideal in determining the level equivalent discount rate assumption. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are the same for the Plan. These geometric rates of return are summarized in the following table: Asset Class New Strategic Allocation Real Return Years 1 - 10 Real Return Years 11+ Global Equity 47% 4.90% 5.38% Global Fixed Income 19% 0.80 2.27 Inflation Sensitive 6% 0.60 1.39 Private Equity 12% 6.60 6.63 Real Estate 11% 2.80 5.21 Infrastructure and Forestland 3% 3.90 5.36 Liquidity 2% (0.40) (0.90) Total 100% CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 60 NOTE 8: DEFINED BENEFIT PENSION PLAN (CONTINUED) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net position liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percent point lower or 1 percent higher than the current rate: Discount Rate - 1% Current Discount Rate Discount Rate +1% (6.15%)(7.15%)(8.15%) Net Pension Liability 18,934,328$ 12,612,523$ 7,376,691$ Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports. NOTE 9: DEFINED CONTRIBUTION PLANS Plan Description The Supplemental Pension Savings Plan is a defined contribution pension plan established by the City to provide retirement excess benefits to general employees of the City. At June 30, 2018, there was one plan member. There are no required contributions by plan members. During the 2017-2018 fiscal year the City made no contributions to fund the Supplemental Pension Savings Plan. NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) Plan Description The City’s Retiree Health Plan is a single-employer defined benefit healthcare plan. The City contributes on behalf of all eligible retirees’ $128/month for the calendar year 2017 and $133/month for calendar 2018, increased in all future years according to the rate of medical inflation. These benefits are provided per contract between the City and the employee associations. A separate financial report is not available for the plan. In fiscal year 2018, the City joined a trust with CalPERS California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 Trust and is an agent multiple employer plan for those electing to prefund OPEB obligations. No assets are accumulated in a trust that meets the criteria of the paragraph 4 of GASB 75 as of the measurement date. Benefits Provided Retirees are eligible for medical benefits if they retire at age 50+, have 5+ years of service within CalPERS, and were enrolled in the CalPERS health system at retirement. The City provides PEMHCA minimum for each subscriber, regardless of elected coverage tier. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 61 NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Employees Covered by Benefit Terms At June 30, 2017, the most recent valuation date, the following current and former employees were covered by the benefit terms of the plan: Active employees 80 Inactive employees or beneficiaries currently receiving benefits 21 Total 101 Contributions The City makes contributions to the plan based on an actuarially determined rate. Employees are not required to contribute to the plan. For the year ended June 30, 2018, the City contributions were $1,523,400 in payments to the CERBT trust. This amount is shown as a Deferred Outflow at June 30, 2018, since these payments were made subsequent to the measurement period ending June 30, 2017. Total OPEB Liability Actuarial Assumptions – The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.00% Inflation 2.75% Payroll Growth Base salary increase in year one: 2.875%. Base salary increases in subsequent years: 2.875%. Additional merit-based increases based on CalPERS. Investment Rate of Return 7.00% Mortality (1) Healthcare Trend Rate 7.00% in the first year, trending down to 3.84% over 58 years. (1) Derived using CalPERS Membership Data for all Funds Mortality rates were based on the CalPERS 1997-2011 Experience Study, which assumed future mortality improvements using Society of Actuaries (SOA) Scale BB. The Experience Study report can be obtained on the CalPERS website under Forms and Publications. The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period. Discount Rate – The discount rate used to measure the total OPEB liability was 7.00 percent for the Plan. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 62 NOTE 10: OTHER POST EMPLOYMENT BENEFIT PLAN (OPEB) (CONTINUED) Changes in Total OPEB Liability: The changes in the OPEB liability for the Plan as of the measurement date June 30, 2017 are as follows: Total OPEB Liability Balance at June 30, 2017 1,288,598$ Changes in the year: Service cost 90,827 Interest on the total OPEB liability 93,346 Benefit payments (91,822) Net changes 92,351 Balance at June 30, 2018 1,380,949$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate– The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00 percent) or 1-percentage-point higher (8.00 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (6.00%) (7.00%) (8.00%) Total OPEB Liability 1,638,202$ 1,380,949$ 1,344,736$ Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates – The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.00 percent decreasing to 2.84 percent) or 1- percentage-point higher (8.00 percent decreasing to 4.84 percent) than the current healthcare cost trend rates: 1% Decrease Discount Rate 1% Increase (6.00% Decreasing to 2.84%) (7.00% Decreasing to 3.84%) (8.00% Decreasing to 4.84%) Total OPEB Liability 1,302,558$ 1,380,949$ 1,694,434$ OPEB Expense and Deferred Outflows of Resources Related to OPEB: For the year ended June 30, 2018, the City recognized OPEB expense of $184,173. At June 30, 2018, the City reported deferred outflows of resources in the amount of $1,523,400. The deferred outflow of resources related to OPEB represents contributions subsequent to the measurement date which will be recognized as a reduction to the total OPEB liability during the fiscal year ending June 30, 2019. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 63 NOTE 11: RISK MANAGEMENT Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of La Quinta is a member of the California Joint Powers Insurance Authority (CJPIA). The CJPIA is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The CJPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. Self-Insurance Programs of the CJPIA Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program In the liability program claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence losses have a sub-limit of $40 million per occurrence. Workers’ Compensation In the workers’ compensation program claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2017-18, the CJPIA’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 64 NOTE 11: RISK MANAGEMENT (CONTINUED) Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. Purchased Insurance Property Insurance - The City of La Quinta participates in the all-risk property protection program of the CJPIA. This insurance protection is underwritten by several insurance companies. City of La Quinta property is currently insured according to a schedule of covered property submitted by the City of La Quinta to the CJPIA. City of La Quinta property currently has all-risk property insurance protection in the amount of $88,336,949. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Earthquake Insurance - The City of La Quinta purchases earthquake insurance brokered through a third party. The City of La Quinta property currently has earthquake protection up to $10,000,000 per occurrence. There is a deductible of $25,000 per occurrence. Premiums for the coverage are paid annually in the amount of $98,700 and are not subject to retrospective adjustments. Crime Insurance - The City purchases crime insurance coverage brokered through a third party. The City pays an annual premium of $3,366, which covers thefts up to $1,000,000, with a deductible of $50,000 per occurrence. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. NOTE 12: FUND BALANCE a. Fund Balance Commitments In the FY 2017-2018, the City conducted an extensive reserve analysis and adopted a new Reserve Policy in May 2018. The policy defines the City’s fund balance and reserve categories, identifies the need for reserves, and outlines the importance of maintaining the integrity of uses and funding amounts. Committed reserves include: Natural Disaster Emergency Reserves: These funds may be used for the preparation, recovery, and restoration of services before, during and/or after a natural disaster (such as flood, earthquake, etc.) as defined by City Code 2.20.020. The target is $10,000,000 and will be reviewed every five years by conducting a risk analysis of all City assets, insurance levels, and potential federal/state contributions towards disaster recovery efforts. For the year ended June 30, 2018, the City has committed $7,400,000 for this purpose. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 65 NOTE 12: FUND BALANCE (CONTINUED) a. Fund Balance Commitments (Continued) Economic Downturn Reserves: These funds may be used in such instances as a declared national, state, or regional recession; loss of a major (top 10) revenue-generating business; or a natural disaster resulting in a significant decline in revenues. These reserves may also be used if overall revenues decrease or expenditures increase more than 10% of the previous year’s actual revenues or expenditures. The target is $11,000,000, based on a 10-year analysis of the revenues and expenditure flows (which included the financial impacts of the Great Recession). The target will be evaluated again in the event of another significant economic downturn. For the year ended June 30, 2018, the City has committed $8,140,000. Cash Flow Reserves: These funds are maintained to have adequate cash on hand to account for the uneven receipt of revenue. For example, property tax accounts for a large percentage of annual revenue, the bulk of which is not remitted until December and May of each year. The target is $5,000,000 and will be determined annually by analyzing the prior fiscal year by month and calculating the largest cumulative deficit between revenues and expenditures, with a minimum expectation of approximately 10% of operating expenditures reserved. The cash flow reserve is fully funded as of June 30, 2018. Capital Improvement Reserves: These funds may be used for capital assets and infrastructure rehabilitation, improvement, and replacement. The target is $10,000,000 and is based on annual depreciation of assets. For the year ended June 30, 2018, the City has committed $5,000,000. Unfunded Pension Liability: These funds may be used to fund future pension obligations such as annual pension fund payments, unfunded pension liability payments, and/or any additional contributions to pay down the unfunded liability. The target is $10,000,000 and will be reviewed annually as CalPERS updates the actuarial reports, which outline the City’s unfunded pension liability and annual contributions. For the year ended June 30, 2018, the City has committed $2,000,000 to the unfunded pension liability reserve. Committed to Fiscal Year 2018-2019 carryovers totaled $2,186,500 at June 30, 2018. b. Assigned Fund Balance The City has the following assigned fund balance shown on the balance sheet: Assigned to public safety represents property tax accumulated and withheld by the County of Riverside to be used for fire protection, disaster preparedness, fire prevention, rescue, hazardous materials mitigation, technical rescue response, medical emergency services, and public service assists. The assigned fund balance related to this item as of June 30, 2018 is $9,754,327. Assigned to capital projects is comprised of carryover balances for capital projects and accumulated resources related to the City’s sales tax Measure G with a combined total of $10,166,785. Capital project carryover balances as of June 30, 2018 are $4,996,815. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 66 NOTE 12: FUND BALANCE (CONTINUED) c.At June 30, 2018, the following funds had deficit fund balances: Major Capital Projects Funds: Capital Improvement 347,562$ Civic Center 7,103,053 Nonmajor Special Revenue Funds: Justice Assistance Grant 268 Nonmajor Capital Projects Funds: Library Development 1,572,557 Street Facility 1,891,594 Fire Facility 490,843 NOTE 13: GOLF COURSE MANAGEMENT AGREEMENT The City entered into an agreement with Landmark Golf Management LLC (operator) to manage the golf operations at the city-owned SilverRock Golf Course. The Agreement entered into on April 6, 2004, sets forth a five-year term commencing upon the completion of the golf course. On January 14, 2005, the golf course was deemed to be complete and management was turned over to the operator. The contract has been amended and extended numerous times with the current contract expiring June 30, 2019. The contract provides that the operator will manage the day to day operations, hire employees, provide golf pro shop and food services, manage all marketing and promotional activities, prepare the annual budget report for Council consideration, and manage accounting and payroll functions. In addition to the annual payment for management services, the City has advanced the operator $250,000 to pay for golf course expenses. Twice a month the operator submits a request for reimbursement to the City to replenish the City’s advance. In addition, the agreement sets forth the establishment of a capital reserve fund of 2 percent of green fees. For the fiscal year ending June 30, 2018, the Golf Course had a loss before transfers of $747,234. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 67 NOTE 14: CONSTRUCTION COMMITMENTS Various construction projects were in progress at June 30, 2018. Projects costs are paid out of the capital improvements fund. The following material construction commitments, for which funds have been encumbered, existed at June 30, 2018, with an estimated cost to complete. Expenditures Project Contract to date as of Remaining Project Name Number Amount June 30, 2018 Commitments Madison Street Ave. 50 to Ave. 52 091002 2,914,993$ 778,492$ 2,136,501$ Dune Palms Road Street Improvements 091004 2,483,000 771,643 1,711,357 Dune Palms Bridge Improvement 111205 17,510,603 1,227,093 16,283,510 SilverRock Infrastructure Improvements 141517 5,733,021 389,969 5,343,052 Miles Avenue Median Island Landscaping 151602 1,122,738 1,003,089 119,649 LQ Village Complete Streets- Road Diet Proj 151603 2,386,442 737,245 1,649,197 La Quinta X Park 151609 3,501,639 53,203 3,448,436 Citywide Drainage Enhancements 151612 8,384,279 3,858,950 4,525,329 HSIP Intersection Improvements 201601 1,260,400 57,045 1,203,355 HSIP Traffic Signal Interconnect Network 201602 2,001,000 106,689 1,894,311 La Quinta Landscape Renovation Improvement 201603 4,682,189 937,332 3,744,857 Fritz Burns Park- Tennis and Pickleball Court 201604 607,250 431,280 175,970 Civic Center Campus Lake/ Irrigation Conver 201606 675,270 132,961 542,309 SilverRock Event Space 201608 3,650,000 54,309 3,595,691 Washington Street at Fred Waring Dr.201701 551,985 10,140 541,845 Eisenhower Retention Basin Landscape 201704 750,000 1,160 748,840 La Quinta High School ADA 201705 259,000 20,617 238,383 Jefferson Street Sidewalk Gap Closure 201706 180,000 27,585 152,415 Ave 53 Jefferson St. Roundabout 201709 2,027,328 44,721 1,982,607 Cove Public Restroom 201801 429,000 - 429,000 Highway 111 Sidewalk Improvements 201803 500,000 - 500,000 Washington St Apts Rehabilitation & Testa Property 999901 27,996,401 812,507 27,183,894 NOTE 15: REIMBURSEMENT AGREEMENTS On September 9, 2014, the City entered into a sales tax sharing agreement with One Eleven La Quinta LLC (“Hobby Lobby”). Under the terms of the agreement the City shall make quarterly payments of 50 percent of any sales tax generated from Hobby Lobby in an amount not to exceed $400,000 over an eight year period. Due to the reporting of sales tax information by the State Board of Equalization to the City, the reimbursement payments by the City will lag by one quarter. The agreement terminates when either the $400,000 limit is reached or in eight years whichever comes first. The Hobby Lobby business opened in December 2014. As of June 30, 2018, the City made $50,020 in reimbursement payments to the owner leaving an outstanding balance of $305,863. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 68 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of La Quinta that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 3, 2011, the City Council elected to become the Successor Agency for the Former Redevelopment Agency (‘Former Agency”) in accordance with the Bill as part of City resolution number 2012-002. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the Former Agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The Successor Agency to the Former Agency is reported as a fiduciary fund (private purpose trust fund). a. Cash and Investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments pooled with the City 43,949,992$ Cash and investments with fiscal agent 2,435 43,952,427$ b. Loans Receivable Owner Participation Agreement – Garff Properties, LLC In July 2010, the Former Agency entered into an Owner Participation Agreement (OPA) with Garff Properties-La Quinta, LLC (“Garff”) that provides for the Former Agency to provide a rehabilitation loan to Garff of up to $2,300,000 for the construction of a new auto dealership facility and rehabilitation of an existing dealership facility. In connection with the OPA, Garff has executed a promissory note which is secured by a deed of trust, and an operating covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan amount. At that time, the note will be cancelled and the operating covenant will terminate. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 69 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) b.Loans Receivable (Continued) If, after ten years of operation, a shortfall exists between the revenues collected and the outstanding loan amount, the note will be cancelled and the operating covenant will terminate. Further, if at any time through no fault of the dealership certain future events outside of the dealership control occur the note will be cancelled and the operating covenant will terminate. The balance at June 30, 2018 is $616,621. Owner Participation Agreement – Torre Nissan In June 2011, the Former Agency entered into an Owner Participation Agreement (OPA) with an auto dealer, Mega Dealer, LLC (“Torre Nissan”) that provides for the Former Agency to provide a rehabilitation loan to Torre Nissan of up to $1,500,000 for the remodeling of the existing dealership and an expansion of the dealership facility to accommodate a new line of electric and commercial vehicles. The new expansion will also include service and parts sales facilities. In connection with the OPA, Torre Nissan has executed a promissory note, which is secured by a subordinated deed of trust, and an operating covenant. The loan will be repaid by crediting future sales and property tax increment taxes generated on the site until the cumulative taxes collected equals the loan amount. If Nissan Motor Company ceases to exist, the note will be cancelled and the operating covenant will terminate. At the end of the ten-year operating covenant, the operating covenant will terminate and the note will be cancelled, and any outstanding loan balance will be forgiven. The balance at June 30, 2018 is $1,104,905. c.Due from other Governments La Quinta Library In April 2005, an advance of $2,490,273 was made from the former redevelopment agency to provide funding for the construction of the public library. The loan accrues interest at the earnings rate of the City’s investment pool fund. The remaining balance of this loan at June 30, 2018, is $1,572,557. d.Deferred Outflows of Resources As debt is refunded, the difference between the carrying value of the refunded debt and the reacquisition price is recorded as a deferred outflow of resources and amortized over the shorter of the new or refunded debt, whichever is shorter. Activity during the fiscal year is comprised of the following: Balance at Balance July 1, 2017 Additions Deductions June 30, 2018 Deferred charge on refunding 11,467,492$ -$583,839$ 10,883,653$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 70 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) e. Long-Term Debt A description of long-term debt outstanding of the Successor Agency as of June 30, 2018, follows: Balance at Balance Due within July 1, 2017 Additions Repayments June 30, 2018 One year Tax allocation bonds 202,445,000$ -$ 8,485,000$ 193,960,000$ 8,360,000$ City loans 36,442,580 3,624,079 3,052,025 37,014,634 3,113,066 Unamortized premiums/discounts 11,923,169 - 698,655 11,224,514 - Total 250,810,749$ 3,624,079$ 12,235,680$ 242,199,148$ 11,473,066$ 2013 Series A On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the amount of $97,190,000 to refinance outstanding long term obligations held by the Successor Agency. The 2013 Series A tax allocation bonds were issued at a premium of $6,056,280 and issuance costs of $480,001. Interest rates on the bonds range from 3.00 percent to 5.00 percent and are payable semi-annually on March 1 and September 1 of each year until maturity. The interest and principal of the bonds are payable solely from property tax revenue. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2018, is $81,945,000 with an unamortized premium of $4,542,210. The minimum annual requirements to amortize the bond payable as of June 30, 2018, are as follows: Year Ending June 30,Principal Interest Total 2019 3,790,000$ 3,953,713$ 7,743,713$ 2020 3,985,000 3,759,338 7,744,338 2021 4,180,000 3,555,213 7,735,213 2022 4,390,000 3,340,963 7,730,963 2023 4,610,000 3,115,963 7,725,963 2024-2028 26,745,000 11,815,111 38,560,111 2029-2033 33,870,000 4,487,810 38,357,810 2034 375,000 8,906 383,906 81,945,000$ 34,037,017$ 115,982,017$ CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 71 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) e. Long-Term Debt (Continued) 2013 Series B On December 17, 2013, the Successor Agency issued subordinate tax allocation refunding bonds in the amount of $23,055,000 to refinance outstanding long term obligations held by the Successor Agency. The 2013 Series B tax allocation bonds were issued at a discount of $8,951 and issuance costs of $122,274. The bonds consist of $3,710,000 of term bonds that accrue interest at 5.240 percent and mature on September 1, 2026, $4,335,000 of term bonds that accrue interest at 5.550 percent and mature on September 1, 2029, and $5,115,000 of term bonds that accrue interest at 5.820 percent and mature on September 1, 2032. The remaining $9,895,000 matures annually with rate ranging from 0.76 percent to 4.89 percent. The interest and principal on the bonds are payable from property tax revenue. A portion of the proceeds were used to fund the bond reserve requirement. The principal balance of outstanding bonds at June 30, 2018, is $19,230,000 with an unamortized discount of $6,711. The minimum annual requirements to amortize the bond payable as of June 30, 2018, are as follows: Year Ending June 30, Principal Interest Total 2019 920,000$ 970,318$ 1,890,318$ 2020 950,000 939,623 1,889,623 2021 985,000 903,488 1,888,488 2022 1,025,000 860,981 1,885,981 2023 1,070,000 812,817 1,882,817 2024-2028 6,200,000 3,173,356 9,373,356 2029-2033 8,080,000 1,220,203 9,300,203 19,230,000$ 8,880,786$ 28,110,786$ 2014 Series A On July 9, 2014, the Successor Agency issued tax allocation refunding bonds in the amount of $65,600,000, with a premium of $8,545,482, to refinance outstanding 2004 Series A Revenue Bonds of $72,865,000 with interest payments ranging between 3 percent to 5.25 percent. The net proceeds of $73,402,709 (after payment of $592,017 in issuance costs) plus an additional $4,012,653 of 2004 Series A sinking fund monies were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent; and issued to pay-off $77,415,362 of remaining principal and accrued interest of 2004 Series A. As a result, the 2004 Series A bonds are considered to be defeased and the liability for those bonds has been removed from the Successor Agency’s long-term debt. The principal balance of outstanding bonds at June 30, 2018, is $59,400,000. The remaining unamortized bond premium at June 30, 2018 was $6,917,771. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 72 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) e. Long-Term Debt (Continued) The Successor Agency in effect reduced its aggregate debt service payments over the remaining maturity period of the 2004 Series A by $11,814,531 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $7,801,878. The minimum annual requirements to amortize the 2014 Series A bonds payable as of June 30, 2018, are as follows: Year Ending June 30,Principal Interest Total 2019 2,340,000$ 2,875,450$ 5,215,450$ 2020 2,435,000 2,779,950 5,214,950 2021 2,530,000 2,668,000 5,198,000 2022 2,660,000 2,538,250 5,198,250 2023 2,795,000 2,401,875 5,196,875 2024-2028 16,190,000 9,714,750 25,904,750 2029-2033 20,665,000 5,130,125 25,795,125 2034-2035 9,785,000 495,375 10,280,375 59,400,000$ 28,603,775$ 88,003,775$ 2016 Series A On December 22, 2016, the La Quinta Redevelopment Project Areas No. 1 and 2 Subordinate Tax Allocation Refunding Bonds 2016 Taxable Series A Bonds were issued for $35,055,000 by the Successor Agency to the La Quinta Redevelopment Agency (the “Agency”) to refinance on an advance basis the La Quinta Redevelopment Agency’s (the “Prior Agency”) previously issued $6,000,000 La Quinta Redevelopment Project Area No. 2, Subordinate Taxable Tax Allocation Bonds, Series 2011 (the “2011 Project Area No. 2 Taxable Bonds”) of which $5,810,000 was outstanding and the Prior Agency’s loan obligation under the Loan Agreement, dated February 3, 2004 as supplemented by the Second Supplemental Loan Agreement, dated as of March 1, 2011 (the “2011 Loan Obligation”) in connection with the La Quinta Financing Authority’s previously issued $28,850,000 Local Agency Subordinate Taxable Revenue Bonds, 2011 Series A (the “2011 Taxable Housing Bonds”) of which $26,635,000 was outstanding. The Bonds were issued on a subordinate basis to the $65,600,000 Successor Agency to the La Quinta Redevelopment Agency, La Quinta Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds, 2014 Series. The Bonds are payable from and secured by the Pledged Tax Revenues, as defined herein, to be derived from the La Quinta Redevelopment Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. The principal of and interest on the Bonds are payable solely from the pledged tax revenues allocated to the Successor Agency from the project areas. The principal balance of outstanding bonds at June 30, 2018, is $33,385,000 with an unamortized discount of $228,726. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 73 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) e. Long-Term Debt (Continued) The Bonds mature in 2040, but may be called before maturity and redeemed at the option of the Agency, in whole or in part, from the proceeds of refunding bonds or other available funds, on September 1, 2026 or on any date thereafter prior to maturity at a redemption price equal to the principal amount of Bonds to be redeemed, without premium, plus accrued interest to the redemption date. Year Ending June 30, Principal Interest Total 2019 1,310,000$ 1,208,580$ 2,518,580$ 2020 1,330,000 1,183,526 2,513,526 2021 1,365,000 1,153,763 2,518,763 2022 1,395,000 1,118,840 2,513,840 2023 1,430,000 1,079,255 2,509,255 2024-2028 7,835,000 4,668,385 12,503,385 2029-2033 9,375,000 3,072,634 12,447,634 2034-2038 8,655,000 897,966 9,552,966 2039-2040 690,000 18,334 708,334 33,385,000$ 14,401,283$ 47,786,283$ Loans from the City of La Quinta The City of La Quinta loaned money to the Former Agency to cover operating and capital shortfalls. In a letter dated November 6, 2013, the California Department of Finance approved the loans as enforceable obligations to be paid through Successor Agency property tax. This loan approved split between the City’s General and the Housing Authority Funds. As of June 30, 2018, principal and interest due to the City of La Quinta was $37,014,634. On November 22, 2017, the Department of Finance (DOF) approved the last and final Recognized Obligation Payment Schedules (ROPS). The ROPS is a comprehensive schedule which includes all bond debt service payments, City loan repayments, administration, and annual reporting requirements from fiscal years 2018-2019 to 2039-2040. f. Pledged Tax Revenues The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $279,882,861 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of indebtedness incurred was $20,600,454 and the debt service obligation on the bonds was $17,790,596. CITY OF LA QUINTA, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2018 74 NOTE 16: SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (CONTINUED) g. Insurance The Successor Agency of the Former Agency is covered under the insurance policy of the City of La Quinta at June 30, 2018. NOTE 17: EXTRAORDINARY ITEM Annual loan repayments are first applied to principal then interest and when received are allocated 80% General Fund and 20% Housing Authority Fund. The total principal repayment for the fiscal year ended June 30, 2018 was $3,624,121 and is reflected as extraordinary revenue. No interest was paid during the fiscal year. The Department of Finance approval of the last and final ROPS increased the quarterly interest rate (from 3% to 4%, since the inception of the loan in November 2006). The interest due as of June 30, 2018 was $11,148,313. NOTE 18: PRIOR PERIOD ADJUSTMENT As discussed under Note 1, the City implemented GASB 75 effective July 1, 2017. Refer to Note 10 for further disclosures related to the plan and related balances. As a result of the implementation; the City restated beginning net position for the fiscal year 2018 as noted below: Governmental Activities Beginning of the year, as previously reported Net Position 673,989,472$ Remove previously reported Net OPEB Obligation 876,592 Deferred outflows of resources related to pension 91,822 Total OPEB Liability as of the measurement date of June 30, 2017 (1,288,598) Beginning of the year, as restated Net Position 673,669,288$ Following is a pro forma effect of the retroactive application: June 30, 2017 Previously June 30, 2017 Presented Restatement Restated Total OPEB Liability 876,592$ 412,006$ 1,288,598$ Deferred outflows of resources - 91,822 91,822 CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2018 See accompanying note to the required supplementary information. 75 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 107,462,473$ 107,462,473$ 107,462,473$ -$ Resources (Inflows): Taxes 37,364,100 41,264,100 44,116,002 2,851,902 Licenses and permits 1,257,700 1,347,700 1,394,820 47,120 Intergovernmental 7,215,000 7,265,000 7,467,753 202,753 Charges for services 1,258,200 1,312,100 1,279,864 (32,236) Use of money and property 530,000 400,000 643,171 243,171 Fines and forfeitures 246,000 266,000 375,390 109,390 Miscellaneous 490,200 508,200 1,033,808 525,608 Extraordinary Item - - 2,899,296 2,899,296 Transfer In 190,400 - 38,048 38,048 Amounts Available for Appropriations 156,014,073 159,825,573 166,710,625 6,885,052 Charges to Appropriation (Outflows): General government Legislative 324,000 324,000 259,964 64,036 City manager 769,000 807,460 783,671 23,789 City attorney 460,000 460,000 420,511 39,489 Marketing 1,170,400 1,173,350 1,074,172 99,178 Human resources 462,900 516,590 474,561 42,029 City clerk 552,200 583,340 527,550 55,790 Fiscal services 1,123,200 1,159,860 1,033,895 125,965 Central services 1,266,300 2,549,380 2,393,228 156,152 The Hub Customer Services 786,300 809,160 766,425 42,735 Public safety Police 15,879,100 15,879,100 15,083,365 795,735 Public buildings 1,578,354 1,613,650 1,639,767 (26,117) Code compliance 1,134,500 1,143,080 1,018,033 125,047 Building & safety 917,200 925,650 686,220 239,430 Fire 6,715,000 6,715,000 6,531,244 183,756 Planning and development Current planning 524,700 554,760 482,189 72,571 Parks and recreation Community services admin 703,500 728,650 631,998 96,652 Wellness center 679,300 661,420 581,478 79,942 Recreation Programs/Special Events 365,000 366,640 310,586 56,054 Park maintenance 1,582,300 1,635,700 1,732,772 (97,072) Public works Administration 1,205,500 1,206,870 786,361 420,509 Development services 595,200 628,330 493,811 134,519 Maintenance/operations - street 8,600 8,600 10,459 (1,859) Engineering services 1,299,400 1,410,620 1,340,230 70,390 Capital outlay 37,746 2,015,000 - 2,015,000 Transfers out 8,041,000 13,242,453 5,824,567 7,417,886 Total Charges to Appropriations 48,180,700 57,118,663 44,887,058 12,231,605 Budgetary Fund Balance, June 30 107,833,373$ 102,706,910$ 121,823,567$ 19,116,657$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY YEAR ENDED JUNE 30, 2018 See accompanying note to the required supplementary information. 76 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 21,730,310$ 21,730,310$ 21,730,310$ -$ Resources (InFlows): Intergovernmental - - 304,474 304,474 Use of money and property 20,000 20,000 959,554 939,554 Extraordinary item - - 724,825 724,825 Other income 899,000 992,800 98,109 (894,691) Amounts Available for Appropriations 22,649,310 22,743,110 23,817,272 1,074,162 Charges to Appropriation (OutFlows): Planning and development Homeless Housing -259,000 259,000 - Administration 158,400 234,220 173,084 61,136 Low/Mod Housing 838,600 776,100 1,553,565 (777,465) Debt service Principal retirement 66,500 66,500 51,989 14,511 Interest and fiscal charges 126,100 126,100 89,447 36,653 Total Charges to Appropriations 1,189,600 1,461,920 2,127,085 (665,165) Budgetary Fund Balance, June 30 21,459,710$ 21,281,190$ 21,690,187$ 408,997$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION MISCELLANEOUS PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS * 77 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.10339% 0.12604% 0.12567% 0.12718% Proportionate Share of the Net Pension Liability 6,433,391$ 8,651,290$ 10,874,098$ 12,612,523$ Covered Payroll 5,421,945$ 5,480,758$ 5,569,002$ 5,739,416$ Proportionate Share of the net pension liability as a Percentage of Covered Payroll 118.65%157.85%195.26%219.75% Plan Fiduciary Net Position as a Percentage of the 79.82%78.40%74.06%73.31% Total Pension Liability * - Fiscal year 2015 was the first year of implementation, therefore, only three years are shown. Changes in Assumptions The discount rate changed from 7.65 percent used for the June 30, 2016 measurement date to 7.15 percent used for the June 30, 2017 measurement date. Covered Payroll In accordance with GASB Statement No. 82, Pension Issues - An Amendment of GASB Statement No. 67, No. 68, and No. 73, we have restated to show covered payroll based on pensionable earnings. CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION MISCELLANEOUS PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS * 78 2015 2016 2017 2018 Actuarially Determined Contributions - Miscellaneous 728,073$ 797,603$ 949,231$ 1,061,439$ Contributions in Relation to the Actuarially Determined Contribution (728,073) (797,603) (949,231) (1,061,439) Contribution Deficiency (Excess)-$ -$ -$ -$ Covered Payroll 5,480,758$ 5,569,002$ 5,739,416$ 6,064,875$ Contributions as a Percentage of Covered Payroll 13.28% 14.32% 16.54% 17.50% * - Fiscal year 2015 was the first year of implementation, therefore, only four years are shown. Covered Payroll In accordance with GASB Statement No. 82, Pension Issues- An Amendment of GASB Statement No. 67, No. 68, and No. 73 , we have restated to show covered payroll based on pensionable earnings. CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, 2018, FOR THE LAST TEN FISCAL YEARS* 79 2018 Total OPEB Liability Service cost 90,827 Interest on the total OPEB liability 93,346 Benefit payments (91,822) Net change in total OPEB liability 92,351 Total OPEB liability- beginning 1,288,598 Total OPEB liability- ending 1,380,949$ Covered-employee payroll 5,603,428 Total OPEB liability as a percentage of covered-employee payroll 25% Notes to Schedule: Funding Policy: The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust. * Fiscal year 2018 was the first year of implementation CITY OF LA QUINTA, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2018 80 NOTE 1: BUDGETS AND BUDGETARY ACCOUNTING a.Budget Procedures General Budget Policies The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Transportation Uniform Mitigation Fee and Indian Gaming Funds did not adopt a budget. 81 OTHER GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues (other than expendable trusts and major capital projects) and the related expenditures that are legally required to be accounted for in a separate fund. The City of La Quinta has the following Special Revenue Funds: State Gas Tax Fund – To account for gasoline allocations made by the State of California. These revenues are restricted by the State to expenditures for street-related purposes only. Library and Museum Fund – To account for revenues from property tax increment dedicated library and museum services. Federal Assistance Fund – To account for revenues from the Community Development Block Grants received from the Federal Government and the expenditures of those resources. State Law Enforcement Services Account (SLESA) Fund – To account for state funded “Citizens for Public Safety” (COPS) program activities, as per Assembly Bill 3229, which supplements frontline police services such as anti-gang community crime prevention. Indian Gaming Fund – To account for contributions for public safety activities to reduce crime and increase public safety. Lighting and Landscape Special Assessment District 89-1 Fund – To account for special assessments levied on real property and the expenditure thereof from City-wide lighting and landscape maintenance and improvements. Quimby Fund – To account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. Capital projects to be funded from this source will be budgeted and expended in a separate capital projects fund. La Quinta Public Safety Officer Fund – To account for contributions to be distributed to public safety officers disabled or killed in the line of duty. Art in Public Places – To account for development fees paid in lieu of acquisition and installation of approved artworks in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites. South Coast Air Quality Fund – To account for contributions from the South Coast Air Quality Management District. Use is limited to reduction and control of airborne pollutants. AB 939 Fund – To account for the State mandated program to reduce waste sent to the landfills through recycling efforts. Development Agreement Fund – To account for the proceeds of development agreement revenues collected and the related expenditures in accordance with State requirements. Law Enforcement Fund – To account for law enforcement grants and restricted revenue for public safety. Justice Assistance Grant Fund – To account for Federal Bureau of Justice Block Grant program grant funds, which are used to reduce crime and improve public safety. 82 SPECIAL REVENUE FUNDS (CONTINUED) Measure A Fund – To account for the revenues and expenditures related to Measure A monies. Transportation Uniform Mitigation Fee Fund – To account for the revenues and expenditures related to Transportation Uniform Mitigation Fee monies. CAPITAL PROJECT FUNDS Capital projects funds account for the financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. Infrastructure Fund – To account for the accumulation of resources provided through developer fees for the acquisition, construction or improvement of the City’s infrastructure, prior to adoption of the new Developer Impact Fee Structure on August 16, 1999. This fund accounts for all developer resources received prior to this date, and is budgeted by the Council through adoption of the annual capital improvement program budget. Transportation Fund, Parks and Recreations Fund, Library Development Fund, Community Center Fund, Street Facility Fund, Park Facility Fund, Fire Facility Fund – To account for the accumulation of resources provided through developer fees for the acquisition, construction, or improvement of the City’s infrastructure. The Developer Impact Fee was adopted by the City Council on August 16, 1999. Eight new funds have been established to account for the specific impact areas of these fees, and are budgeted by the Council through adoption of the annual Capital Improvement Program budget. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental long-term debt principal and interest. La Quinta Financing Authority Fund – To account for rental activity for the Civic Center and rental income used to pay the Financing Authority Civic Center and 2004 Local Agency Revenue Bond debt obligations. CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2018 83 Library and Federal Gas Tax Museum Assistance SLESA Assets: Pooled cash and investments 353,656$ 4,928,675$ -$ 65,004$ Receivables: Taxes - - - - Accrued interest 1,083 12,878 - 109 Due from other governments 35,372 874,054 - 25,000 Total Assets 390,111$ 5,815,607$ -$ 90,113$ Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable 12,657$ 29,844$ -$ 31,475$ Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 12,657 29,844 - 31,475 Deferred Inflow of Resources: Unavailable revenues - 874,054 - - Fund Balances: Restricted for: Planning and development projects - - - - Public safety - - - 58,638 Community services - 4,911,709 - - Public works 377,454 - - - Capital projects - - - - Unassigned - - - - Total Fund Balances 377,454 4,911,709 - 58,638 Total Liabilities, Deferred Inflows of Resources and Fund Balances 390,111$ 5,815,607$ -$ 90,113$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 84 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Lighting and Indian Gaming Landscaping Quimby Public Safety -$ 449,949$ 4,583,220$ 40,338$ - 18,880 - - - 922 12,696 105 - -- - -$ 469,751$ 4,595,916$ 40,443$ -$ 59,126$ -$ -$ - - - - - - - - - - - - - 59,126 - - - - - - - - - - - - - 40,443 - - 4,595,916 - - 410,625 - - - - - - - - - - - 410,625 4,595,916 40,443 -$ 469,751$ 4,595,916$ 40,443$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 85 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Art in South Coast Development Public Places Air Quality AB 939 Agreement 507,653$ 85,866$ 814,034$ 56,494$ - - 2,893 - 1,374 442 2,097 336 - 13,392 10,377 - 509,027$ 99,700$ 829,401$ 56,830$ -$ 10,044$ 2,742$ -$ - - - - - - - - - - - - - 10,044 2,742 - - - - - - 89,656 826,659 - - - - - 509,027 - - - - - - - - - - 56,830 - - - - 509,027 89,656 826,659 56,830 509,027$ 99,700$ 829,401$ 56,830$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 86 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Justice Transportation Law Assistance Uniform Enforcement Grant Measure A Mitigation Fee 298,392$ -$ 1,119,892$ 65,249$ - - 122,874 - 530 -2,782 99 12,299 --- 311,221$ -$ 1,245,548$ 65,348$ 3,078$ -$ -$ 64,250$ - - - - 5,667 268 - - - - - - 8,745 268 - 64,250 - - - - - - - 1,098 302,476 - - - - - - - - -1,245,548 - - --- - (268) - - 302,476 (268) 1,245,548 1,098 311,221$ -$ 1,245,548$ 65,348$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 87 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Parks and Library Infrastructure Transportation Recreation Development 23,851$ 3,089,108$ 887,905$ -$ - - - - 63 9,272 - - - - - - 23,914$ 3,098,380$ 887,905$ -$ -$ -$ -$ -$ - - - 1,572,557 - - - - - - - - - - - 1,572,557 - - - - - - - - - - - - - - - - - - - - 23,914 3,098,380 887,905 - - - - (1,572,557) 23,914 3,098,380 887,905 (1,572,557) 23,914$ 3,098,380$ 887,905$ -$ Capital Projects Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 88 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Community Center Street Facility Park Facility Fire Facility 136,626$ -$ 3$ -$ - - - - 331 -2 - - --- 136,957$ -$ 5$ -$ -$-$-$-$ - -- - - 122 - - -1,891,472 -490,843 -1,891,594 -490,843 - - - - - - - - - - - - - - - - - - - - 136,957 -5 - - (1,891,594) -(490,843) 136,957 (1,891,594) 5 (490,843) 136,957$ -$ 5$ -$ Capital Project Funds CITY OF LA QUINTA, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2018 89 Assets: Pooled cash and investments Receivables: Taxes Accrued interest Due from other governments Total Assets Liabilities, Deferred Inflow of Resources and Fund Balances: Liabilities: Accounts payable Due to other governments Due to other funds Advances from other funds Total Liabilities Deferred Inflow of Resources: Unavailable revenues Fund Balances: Restricted for: Planning and development projects Public safety Community services Public works Capital projects Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Debt Service Funds Total Financing Governmental Authority Funds 177$ 17,506,092$ - 144,647 - 45,121 - 970,494 177$ 18,666,354$ -$ 213,216$ - 1,572,557 - 6,057 - 2,382,315 - 4,174,145 - 874,054 - 917,413 - 401,557 - 10,016,652 - 2,033,627 177 4,204,168 - (3,955,262) 177 13,618,155 177$ 18,666,354$ CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 90 Library and Federal Gas Tax Museum Assistance SLESA Revenues: Taxes -$ -$ -$ -$ Assessments - - - - Intergovernmental 1,002,529 2,626,417 187,282 156,083 Use of money and property 3,651 36,102 - 89 Developer participation - - - - Miscellaneous 46,243 - - - Total Revenues 1,052,423 2,662,519 187,282 156,172 Expenditures: Current: General government - - - - Public safety - - - 83,095 Planning and development - - - - Community services - 1,705,560 - - Public works 1,108,502 - 18,360 - Capital outlay - 532,125 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,108,502 2,237,685 18,360 83,095 Excess (Deficiency) of Revenues Over (Under) Expenditures (56,079) 424,834 168,922 73,077 Other Financing Sources (Uses): Transfers in 293,500 - - - Transfers out (187,507) - (168,922) - Total Other Financing Sources (Uses)105,993 - (168,922) - Net Change in Fund Balances 49,914 424,834 - 73,077 Fund Balances, Beginning of Year 327,540 4,486,875 - (14,439) Fund Balances, End of Year 377,454$ 4,911,709$ -$ 58,638$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 91 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Lighting and Indian Gaming Landscaping Quimby Public Safety -$ -$ -$ -$ - 950,541 - - - - - - - 1,899 38,169 295 - - 15,138 - - - - - - 952,440 53,307 295 - - - - - - - - - - - - - - - - - 1,395,988 - - - - - - - - - - - - - - - 1,395,988 - - - (443,548) 53,307 295 - 490,000 - 2,000 (38,048) - (462,938) - (38,048) 490,000 (462,938) 2,000 (38,048) 46,452 (409,631) 2,295 38,048 364,173 5,005,547 38,148 -$ 410,625$ 4,595,916$ 40,443$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 92 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Art in South Coast Development Public Places Air Quality AB 939 Agreement -$ -$54,111$ -$ - -- - - 51,892 10,377 - 4,034 2,004 5,811 1,611 32,607 - - - 6,750 - - - 43,391 53,896 70,299 1,611 - - - - - - - - -38,920 17,901 - 14,686 - - - - - - - 70,012 91,566 -80,996 - - - - - - - - 84,698 130,486 17,901 80,996 (41,307) (76,590) 52,398 (79,385) - - - - - - - - - - - - (41,307) (76,590) 52,398 (79,385) 550,334 166,246 774,261 136,215 509,027$ 89,656$ 826,659$ 56,830$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 93 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Justice Transportation Law Assistance Uniform Enforcement Grant Measure A Mitigation Fee -$ -$ 761,137$ -$ - - - - 18,040 - - - (1,326) - 7,219 7 - - - - - - 11,147 - 16,714 - 779,503 7 - - - - 21,548 - - - - - - - - - - - - - - - - - - - - - - - - - - - 21,548 - - - (4,834) - 779,503 7 300,000 - - - - - (388,747) - 300,000 - (388,747) - 295,166 - 390,756 7 7,310 (268) 854,792 1,091 302,476$ (268)$ 1,245,548$ 1,098$ Special Revenue Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 94 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Parks and Library Infrastructure Transportation Recreation Development -$ -$ -$-$ - - - - - - - - 182 30,144 (6,762) - - 509,221 335,872 56,416 - - - - 182 539,365 329,110 56,416 - - - - - - - - - - - - - - - - -400,000 - - --- - - - - - - - - 19,138 -400,000 -19,138 182 139,365 329,110 37,278 - - - - -(697,811) - - -(697,811) - - 182 (558,446) 329,110 37,278 23,732 3,656,826 558,795 (1,609,835) 23,914$ 3,098,380$ 887,905$ (1,572,557)$ Capital Projects Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 95 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Community Center Street Facility Park Facility Fire Facility -$ -$ -$ -$ - - - - - - - - 837 - 10 - 21,156 20,782 6,560 66,456 - - - - 21,993 20,782 6,570 66,456 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -21,296 - 4,634 -21,296 - 4,634 21,993 (514)6,570 61,822 -6,567 - - --(6,567) - - 6,567 (6,567) - 21,993 6,053 3 61,822 114,964 (1,897,647) 2 (552,665) 136,957$ (1,891,594)$ 5$ (490,843)$ Capital Projects Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2018 96 Revenues: Taxes Assessments Intergovernmental Use of money and property Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Planning and development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Debt Service Funds Total Financing Governmental Authority Funds -$ 815,248$ -950,541 -4,052,620 671,451 795,427 -1,064,208 -64,140 671,451 7,742,184 3,133 3,133 -104,643 -56,821 -1,720,246 -2,922,850 -774,699 615,000 615,000 53,141 98,209 671,274 6,295,601 177 1,446,583 95 1,092,162 -(1,950,540) 95 (858,378) 272 588,205 (95) 13,029,950 177$ 13,618,155$ CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE STATE GAS TAX YEAR ENDED JUNE 30, 2018 97 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 327,540$ 327,540$ 327,540$ -$ Resources (InFlows): Intergovernmental 1,119,900 1,119,900 1,002,529 (117,371) Use of money and property 2,000 2,000 3,651 1,651 Miscellaneous - - 46,243 46,243 Transfers in 293,500 293,500 293,500 - Amounts Available for Appropriations 1,742,940 1,742,940 1,673,463 (69,477) Charges to Appropriation (OutFlows): Public works 1,204,500 1,211,740 1,108,502 103,238 Transfers out 230,500 230,500 187,507 42,993 Total Charges to Appropriations 1,435,000 1,442,240 1,296,009 146,231 Budgetary Fund Balance, June 30 307,940$ 300,700$ 377,454$ 76,754$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE LIBRARY AND MUSEUM YEAR ENDED JUNE 30, 2018 98 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,486,875$ 4,486,875$ 4,486,875$ -$ Resources (InFlows): Intergovernmental 2,244,000 2,244,000 2,626,417 382,417 Use of money and property 10,000 10,000 36,102 26,102 Amounts Available for Appropriations 6,740,875 6,740,875 7,149,394 408,519 Charges to Appropriation (OutFlows): Community services 1,947,500 1,994,500 1,705,560 288,940 Capital Outlay - 530,000 532,125 (2,125) Total Charges to Appropriations 1,947,500 2,524,500 2,237,685 286,815 Budgetary Fund Balance, June 30 4,793,375$ 4,216,375$ 4,911,709$ 695,334$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE FEDERAL ASSISTANCE YEAR ENDED JUNE 30, 2018 99 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$-$ -$ Resources (InFlows): Intergovernmental 125,800 189,089 187,282 (1,807) Amounts Available for Appropriations 125,800 189,089 187,282 (1,807) Charges to Appropriation (OutFlows): Public Works 20,200 20,200 18,360 1,840 Transfers out 105,600 168,889 168,922 (33) Total Charges to Appropriations 125,800 189,089 187,282 1,807 Budgetary Fund Balance, June 30 -$ -$ -$-$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE SLESA YEAR ENDED JUNE 30, 2018 100 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (14,439)$ (14,439)$ (14,439)$ -$ Resources (InFlows): Intergovernmental 100,000 100,000 156,083 56,083 Use of money and property 100 100 89 (11) Amounts Available for Appropriations 85,661 85,661 141,733 56,072 Charges to Appropriation (OutFlows): Public safety 100,000 100,000 83,095 16,905 Total Charges to Appropriations 100,000 100,000 83,095 16,905 Budgetary Fund Balance, June 30 (14,339)$ (14,339)$ 58,638$ 72,977$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE LIGHTING AND LANDSCAPING YEAR ENDED JUNE 30, 2018 101 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 364,173$ 364,173$ 364,173$ -$ Resources (InFlows): Assessments 958,900 958,900 950,541 (8,359) Use of money and property - - 1,899 1,899 Transfers in 490,000 490,000 490,000 - Amounts Available for Appropriations 1,813,073 1,813,073 1,806,612 (6,461) Charges to Appropriation (OutFlows): Public works 1,519,300 1,527,920 1,395,987 131,933 Total Charges to Appropriations 1,519,300 1,527,920 1,395,987 131,933 Budgetary Fund Balance, June 30 293,773$ 285,153$ 410,625$ 125,472$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE QUIMBY YEAR ENDED JUNE 30, 2018 102 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 5,005,547$ 5,005,547$ 5,005,547$ -$ Resources (InFlows): Investment income 15,000 15,000 38,169 23,169 Developer participation 40,000 40,000 15,138 (24,862) Amounts Available for Appropriations 5,060,547 5,060,547 5,058,854 (1,693) Charges to Appropriation (OutFlows): Transfers out - 4,013,078 462,938 3,550,140 Total Charges to Appropriations - 4,013,078 462,938 3,550,140 Budgetary Fund Balance, June 30 5,060,547$ 1,047,469$ 4,595,916$ 3,548,447$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY YEAR ENDED JUNE 30, 2018 103 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 38,148$ 38,148$ 38,148$ -$ Resources (InFlows): Use of money and property 100 100 295 195 Transfers in 2,000 2,000 2,000 - Amounts Available for Appropriations 40,248 40,248 40,443 195 Budgetary Fund Balance, June 30 40,248$ 40,248$ 40,443$ 195$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2018 104 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 550,334$ 550,334$ 550,334$ -$ Resources (InFlows): Use of money and property 3,500 3,500 4,034 534 Developer participation 50,000 35,000 32,607 (2,393) Miscellaneous revenue - 6,700 6,750 50 Amounts Available for Appropriations 603,834 595,534 593,725 (1,809) Charges to Appropriation (OutFlows): Community services 22,000 22,000 14,686 7,314 Capital outlay 100,000 100,000 70,012 29,988 Transfers out - 200,000 - 200,000 Total Charges to Appropriations 122,000 322,000 84,698 237,302 Budgetary Fund Balance, June 30 481,834$ 273,534$ 509,027$ 235,493$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE SOUTH COAST AIR QUALITY YEAR ENDED JUNE 30, 2018 105 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 166,246$ 166,246$ 166,246$ -$ Resources (InFlows): Intergovernmental 50,000 50,000 51,892 1,892 Use of money and property 300 300 2,004 1,704 Amounts Available for Appropriations 216,546 216,546 220,142 3,596 Charges to Appropriation (OutFlows): Planning and development 32,000 119,000 130,486 (11,486) Total Charges to Appropriations 32,000 119,000 130,486 (11,486) Budgetary Fund Balance, June 30 184,546$ 97,546$ 89,656$ (7,890)$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE AB 939 YEAR ENDED JUNE 30, 2018 106 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 774,261$ 774,261$ 774,261$ -$ Resources (InFlows): Taxes 60,000 60,000 54,111 (5,889) Intergovernmental - - 10,377 10,377 Use of money and property 2,500 2,500 5,811 3,311 Amounts Available for Appropriations 836,761 836,761 844,560 7,799 Charges to Appropriation (OutFlows): Planning and development 20,000 20,000 17,901 2,099 Total Charges to Appropriations 20,000 20,000 17,901 2,099 Budgetary Fund Balance, June 30 816,761$ 816,761$ 826,659$ 9,898$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE LAW ENFORCEMENT YEAR ENDED JUNE 30, 2018 107 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 7,310$ 7,310$ 7,310$ -$ Resources (InFlows): Intergovernmental - 18,300 18,040 (260) Use of money and property - - (1,326) (1,326) Transfer In 300,000 300,000 300,000 - Amounts Available for Appropriations 307,310 325,610 324,024 (1,586) Charges to Appropriation (OutFlows): Public safety - 6,000 21,548 (15,548) Total Charges to Appropriations - 6,000 21,548 (15,548) Budgetary Fund Balance, June 30 307,310$ 319,610$ 302,476$ (17,134)$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2018 108 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (268)$ (268)$ (268)$ -$ Resources (InFlows): Intergovernmental - - - - Use of money and property - - - - Amounts Available for Appropriations (268) (268) (268) - Budgetary Fund Balance, June 30 (268)$ (268)$ (268)$ -$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE MEASURE A YEAR ENDED JUNE 30, 2018 109 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 854,792$ 854,792$ 854,792$ -$ Resources (InFlows): Taxes 724,500 724,500 761,137 36,637 Use of money and property - - 7,219 7,219 Miscellaneous revenue - 11,000 11,147 147 Amounts Available for Appropriations 1,579,292 1,590,292 1,634,295 44,003 Charges to Appropriation (OutFlows): Public Works - 11,000 - (11,000) Transfers out 787,000 1,827,604 388,747 1,438,857 Total Charges to Appropriations 787,000 1,838,604 388,747 1,427,857 Budgetary Fund Balance, June 30 792,292$ (248,312)$ 1,245,548$ 1,493,860$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT YEAR ENDED JUNE 30, 2018 110 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (178,798)$ (178,798)$ (178,798)$ -$ Resources (InFlows): Intergovernmental -21,084,275 730,412 (20,353,863) Use of money and property --(9,486) (9,486) Developer participation -874,491 324,943 (549,548) Transfers in 8,423,900 26,947,279 6,302,130 (20,645,149) Amounts Available for Appropriations 8,245,102 48,727,247 7,169,201 (41,558,046) Charges to Appropriation (OutFlows): Planning and development - - 126,009 (126,009) Capital outlay 8,614,400 48,708,066 7,390,754 41,317,312 Total Charges to Appropriations 8,614,400 48,708,066 7,516,763 41,191,303 Budgetary Fund Balance, June 30 (369,298)$ 19,181$ (347,562)$ (366,743)$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE CIVIC CENTER YEAR ENDED JUNE 30, 2018 111 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (7,169,261)$ (7,169,261)$ (7,169,261)$ -$ Resources (InFlows): Use of money and property - - 17 17 Developer participation 100,000 120,000 145,477 25,477 Amounts Available for Appropriations (7,069,261) (7,049,261) (7,023,767) 25,494 Charges to Appropriation (OutFlows): Debt service: Interest and fiscal charges - 56,000 79,286 (23,286) Total Charges to Appropriations - 56,000 79,286 (23,286) Budgetary Fund Balance, June 30 (7,069,261)$ (7,105,261)$ (7,103,053)$ 2,208$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE TRANSPORTATION YEAR ENDED JUNE 30, 2018 112 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,656,826$ 3,656,826$ 3,656,826$ -$ Resources (InFlows): Use of money and property 19,000 19,000 30,144 11,144 Developer participation 350,000 396,000 509,221 113,221 Amounts Available for Appropriations 4,025,826 4,071,826 4,196,191 124,365 Charges to Appropriation (OutFlows): Public Works 400,000 400,000 400,000 - Transfers out 605,100 3,037,525 697,811 2,339,714 Total Charges to Appropriations 1,005,100 3,437,525 1,097,811 2,339,714 Budgetary Fund Balance, June 30 3,020,726$ 634,301$ 3,098,380$ 2,464,079$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION YEAR ENDED JUNE 30, 2018 113 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 558,795$ 558,795$ 558,795$ -$ Resources (InFlows): Use of money and property - - (6,762) (6,762) Developer participation 200,000 254,000 335,872 81,872 Amounts Available for Appropriations 758,795 812,795 887,905 75,110 Budgetary Fund Balance, June 30 758,795$ 812,795$ 887,905$ 75,110$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE LIBRARY DEVELOPMENT YEAR ENDED JUNE 30, 2018 114 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (1,609,835)$ (1,609,835)$ (1,609,835)$ -$ Resources (InFlows): Developer participation 30,000 43,000 56,416 13,416 Amounts Available for Appropriations (1,579,835) (1,566,835) (1,553,419) 13,416 Charges to Appropriation (OutFlows): Debt service: Interest and fiscal charges - 14,000 19,138 (5,138) Total Charges to Appropriations - 14,000 19,138 (5,138) Budgetary Fund Balance, June 30 (1,579,835)$ (1,580,835)$ (1,572,557)$ 8,278$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE COMMUNITY CENTER YEAR ENDED JUNE 30, 2018 115 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 114,964$ 114,964$ 114,964$ -$ Resources (InFlows): Use of money and property 400 400 837 437 Developer participation 15,000 15,000 21,156 6,156 Amounts Available for Appropriations 130,364 130,364 136,957 6,593 Charges to Appropriation (OutFlows): Transfers out 101,600 101,600 - (101,600) Total Charges to Appropriations 101,600 101,600 - (101,600) Budgetary Fund Balance, June 30 28,764$ 28,764$ 136,957$ 108,193$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE STREET FACILITY YEAR ENDED JUNE 30, 2018 116 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (1,897,647)$ (1,897,647)$ (1,897,647)$ -$ Resources (InFlows): Developer participation 15,000 15,000 20,782 5,782 Transfers in -5,000 6,567 1,567 Amounts Available for Appropriations (1,882,647) (1,877,647) (1,870,298) 7,349 Charges to Appropriation (OutFlows): Debt service: Interest and fiscal charges - 15,000 21,296 (6,296) Total Charges to Appropriations - 15,000 21,296 (6,296) Budgetary Fund Balance, June 30 (1,882,647)$ (1,892,647)$ (1,891,594)$ 1,053$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE PARK FACILITY YEAR ENDED JUNE 30, 2018 117 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2$ 2$ 2$ -$ Resources (InFlows): Use of money and property - - 10 10 Developer participation 4,000 4,000 6,560 2,560 Amounts Available for Appropriations 4,002 4,002 6,572 2,570 Charges to Appropriation (OutFlows): Debt service: Interest and fiscal charges - 5,000 6,567 (1,567) Total Charges to Appropriations - 5,000 6,567 (1,567) Budgetary Fund Balance, June 30 4,002$ (998)$ 5$ 1,003$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE FIRE FACILITY YEAR ENDED JUNE 30, 2018 118 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (552,665)$ (552,665)$ (552,665)$ -$ Resources (InFlows): Developer participation 40,000 55,000 66,456 11,456 Amounts Available for Appropriations (512,665) (497,665) (486,209) 11,456 Charges to Appropriation (OutFlows): Debt service: Interest and fiscal charges - 3,000 4,634 (1,634) Total Charges to Appropriations - 3,000 4,634 (1,634) Budgetary Fund Balance, June 30 (512,665)$ (500,665)$ (490,843)$ 9,822$ Budget Amounts CITY OF LA QUINTA, CALIFORNIA BUDGETARY COMPARISON SCHEDULE FINANCING AUTHORITY YEAR ENDED JUNE 30, 2018 119 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (95)$ (95)$ (95)$ -$ Resources (InFlows): Use of money and property 671,400 671,400 671,451 51 Transfers in - - 95 95 Amounts Available for Appropriations 671,305 671,305 671,451 146 Charges to Appropriation (OutFlows): General government 3,300 3,300 3,133 167 Debt service: Principal retirement 615,000 615,000 615,000 - Interest and fiscal charges 53,100 53,100 53,141 (41) Total Charges to Appropriations 671,400 671,400 671,274 126 Budgetary Fund Balance, June 30 (95)$ (95)$ 177$ 272$ Budget Amounts 120 INTERNAL SERVICE FUNDS Internal service funds are used to account for activities involved in rendering services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such goods are delivered or services rendered. The City of La Quinta has the following Internal Service Funds: Equipment Replacement Fund – To account for the operational maintenance and ultimate replacement of City owned and operated vehicles and equipment. Information Technology Fund – To account for the purchase and replacement of information systems. Park Equipment and Facilities Fund – To account for the purchase and replacement of City owned parked facility infrastructure. Insurance Fund – To account for the City’s insurance coverage. CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2018 121 Park Equipment Information Equipment Replacement Technology and Facilities Insurance Totals Assets: Current: Cash and investments 2,830,200$ 774,169$ 3,107,175$ 1,247$ 6,712,791$ Receivables: Accrued interest 7,582 1,800 8,214 462 18,058 Prepaid costs - 28,986 - 614,146 643,132 Total Current Assets 2,837,782 804,955 3,115,389 615,855 7,373,981 Noncurrent: Capital assets - net of accumulated depreciation 1,456,498 376,159 13,148,195 - 14,980,852 Total Assets 4,294,280$ 1,181,114$ 16,263,584$ 615,855$ 22,354,833$ Liabilities and Net Position Liabilities: Current: Accounts payable 11,102$ 57,406$ 52,698$ -$ 121,206$ Accrued liabilities - - - - - Due to other funds - - - 358,057 358,057 Current portion of capital leases 107,450 - - - 107,450 Total Current Liabilities 118,552 57,406 52,698 358,057 586,713 Noncurrent: Long-term portion of capital leases 531,173 5,112 - - 536,285 Total Liabilities 649,725 62,518 52,698 358,057 1,122,998 Net Position: Net investment in capital assets 817,875 371,047 13,148,195 - 14,337,117 Unrestricted 2,826,680 747,549 3,062,691 257,798 6,894,718 Total Net Position 3,644,555 1,118,596 16,210,886 257,798 21,231,835 Total Liabilities and Net Position 4,294,280$ 1,181,114$ 16,263,584$ 615,855$ 22,354,833$ Governmental Activities - Internal Service Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2018 122 Park Equipment Information Equipment and Replacement Technology Facilities Insurance Totals Operating Revenues: Sales and service charges 564,000$ 750,142$ 300,000$ 989,000$ 2,603,142$ Operating Expenses: Administration and general 86,573 73,206 1,000 323,931 484,710 Fuel and oil 54,198 - - - 54,198 Maintenance and parts 182,283 - - - 182,283 Contract services - 323,106 299,363 -622,469 Software and supplies - 357,577 - 580,417 937,994 Depreciation expense 155,260 155,646 530,421 -841,327 Total Operating Expenses 478,314 909,535 830,784 904,348 3,122,981 Operating Income (Loss)85,686 (159,393) (530,784) 84,652 (519,839) Nonoperating Revenue (Expenses): Interest revenue 22,039 4,622 23,428 2,982 53,071 Miscellaneous revenue 13,379 - - 3,986 17,365 Interest expense - (647) - - (647) Gain on disposal of capital assets 130,235 89,804 - - 220,039 Total Nonoperating Revenues (Expenses)165,653 93,779 23,428 6,968 289,828 Income (Loss) before transfers 251,339 (65,614) (507,356) 91,620 (230,011) Transfers out (91,233) - - - (91,233) Changes in Net Position 160,106 (65,614) (507,356) 91,620 (321,244) Net Position: Beginning of Year 3,484,449 1,184,210 16,718,242 166,178 21,553,079 End of Fiscal Year 3,644,555$ 1,118,596$ 16,210,886$ 257,798$ 21,231,835$ Governmental Activities - Internal Service Funds CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2018 123 Park Equipment Information Equipment Replacement Technology and Facilities Insurance Totals Cash Flows from Operating Activities: Cash received from interfund services provided 564,000$ 750,142$ 300,000$ 987,871$ 2,602,013$ Cash paid to suppliers for goods and services (314,651) (730,102) (247,980) (993,136) (2,285,869) Net Cash Provided (Used) by Operating Activities 249,349 20,040 52,020 (5,265) 316,144 Cash Flows from Capital and Related Financing Activities: Capital contributions - - - - - Acquisition and construction of capital assets (606,194) (101,160) (58,530) - (765,884) Interest paid on capital debt - (647) - - (647) Capital lease 210,995 (47,503) - - 163,492 Proceeds from sales of capital assets 130,235 89,804 - - 220,039 Net Cash Provided/(Used) for Capital and Related Financing Activities (264,964) (59,506) (58,530) - (383,000) Cash Flows from Non-Capital and Related Financing Activities: Other receipts - - - 3,986 3,986 Cash Flows from Investing Activities Interest received (59,137) 3,847 19,597 2,526 (33,167)$ Net Cash Provided by Investing Activities (59,137) 3,847 19,597 2,526 (33,167) Net Increase (Decrease) in Cash and Cash Equivalents (74,752) (35,619) 13,087 1,247 (96,037) Cash and Cash Equivalents at Beginning of Year 2,904,952 809,788 3,094,088 - 6,808,828 Cash and Cash Equivalents at End of Year 2,830,200$ 774,169$ 3,107,175$ 1,247$ 6,712,791$ - - - Reconciliation of Operating Income to Net Cash Provided (used) by Operating Activities: Operating income (loss) 85,686$ (159,393)$ (530,784)$ 84,652$ (519,839)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 155,260 155,646 530,421 - 841,327 (Increase) decrease in prepaid expenses - (11,742) - 55,239 43,497 Increase (decrease) in accounts payable 8,403 36,331 52,383 - 97,117 Increase (decrease) in accrued liabilities - (802) - (1,129) (1,931) Increase (decrease) in due to other funds - - - (144,027) (144,027) Total Adjustments 163,663 179,433 582,804 (89,917) 835,983 Net Cash Provided (Used) by Operating Activities 249,349$ 20,040$ 52,020$ (5,265)$ 316,144$ Non-Cash Investing, Capital, and Financing Activities: There were no non-cash transactions in the current year. Governmental Activities - Internal Service Funds 124 AGENCY FUNDS Agency funds are used to account for assets held by the City as an agent for individual, private organizations and other governmental units. The agency funds and their purposes are as follows: The City of La Quinta has the following agency funds: Assessment District No. 97-1 and 2001-1 – To account for assessments paid to the City for debt services payments on bond issues used to finance sewer improvements. CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF NET POSITION ALL AGENCY FUNDS JUNE 30, 2018 125 Assessment Assessment District No. 97-1 District No. 2001 Totals Assets: Pooled cash and investments 28,477$ 143,317$ 171,794$ Receivables: Accrued interest 77 -77 Total Assets 28,554$ 143,317$ 171,871$ Liabilities: Deposits payable 28,554$ 143,317$ 171,871$ CITY OF LA QUINTA, CALIFORNIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2018 126 Balance Balance 7/1/2017 Additions Deductions 6/30/2018 Assessment District No. 97-1 Assets: Pooled cash and investments 29,051$ 1,111$ 1,687$ 28,475$ Receivables: Taxes 733 -733 - Total Assets 29,784$ 1,111$ 2,420$ 28,475$ Liabilities: Deposits payable 29,784$ -$ 1,309$ 28,475$ Total Liabilities 29,784$ -$ 1,309$ 28,475$ Assessment District No. 2001-1 Assets: Pooled cash and investments 144,261$ -$ 946$ 143,315$ Receivables: Taxes - - - - Total Assets 144,261$ -$ 946$ 143,315$ Liabilities: Deposits payable 144,261$ -$ 946$ 143,315$ Total Liabilities 144,261$ -$ 946$ 143,315$ Total - All Agency Funds Assets: Pooled cash and investments 173,312$ 1,111$ 2,633$ 171,790$ Receivables: Taxes 733 -733 - Total Assets 174,045$ 1,111$ 3,366$ 171,790$ Liabilities: Deposits payable 174,045$ -$ 2,255$ 171,790$ Total Liabilities 174,045$ -$ 2,255$ 171,790$ This page left blank intentionally. 127 STATISTICAL SECTION (UNAUDITED) This part of the City of La Quinta' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 128 Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue sources, general and Redevelopment property taxes. 140 Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 150 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 157 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 160 Sources: Unless otherwise noted, the information in these schedules was derived from the City's comprehensive annual financial reports for the relevant year. CITY OF LA QUINTA Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2009 2010 2011 2012 2013 Governmental Activities: Net investment in capital assets 323,669,955$ 336,459,272$ 276,787,752$ 534,388,479$ 529,681,342$ Restricted 105,297,168 96,332,870 107,042,126 26,585,382 49,598,397 Unrestricted 96,654,981 77,187,433 97,009,428 89,832,811 83,399,745 Total Governmental Activities Net Position 525,622,104 509,979,575 480,839,306 650,806,672 662,679,484 Business-Type Activities: Net investment in capital assets 42,536,608 42,879,482 42,491,051 42,105,683 41,741,443 Restricted ----- Unrestricted (3,937,454) (4,863,848) (4,918,951) (4,745,892) (4,750,604) Total Business-Type Activities Net Position 38,599,154 38,015,634 37,572,100 37,359,791 36,990,839 Primary Government: Net investment in capital assets 366,206,563 379,338,754 319,278,803 576,494,162 571,422,785 Restricted 105,297,168 96,332,870 107,042,126 26,585,382 49,598,397 Unrestricted 92,717,527 72,323,585 92,090,477 85,086,919 78,649,141 Total Primary Government Net Position 564,221,258 547,995,209 518,411,406 688,166,463 699,670,323 Fiscal Year Source:City of La Quinta 128 TABLE 1 2014 2015 2016 2017 2018 Governmental Activities: 527,614,666$ 523,495,389$ 516,499,682$ 517,039,487$ 510,913,594$ Net investment in capital assets 53,669,248 62,472,221 61,148,731 38,824,860 39,204,789 Restricted 83,907,046 74,362,189 84,439,071 118,125,125 130,950,644 Unrestricted 665,190,960 660,329,799 662,087,484 673,989,472 681,069,027 Total Governmental Activities Net Position Business-Type Activities: 41,354,565 44,118,111 43,898,784 43,836,868 43,585,880 Net investment in capital assets ----Restricted (4,674,666) (4,892,647) (5,086,906) (5,140,966) (5,203,212) Unrestricted 36,679,899 39,225,464 38,811,878 38,695,902 38,382,668 Total Business-Type Activities Net Position Primary Government: 568,969,231 567,613,500 560,398,466 560,876,355 554,499,474 Net investment in capital assets 53,669,248 62,472,221 61,148,731 38,824,860 39,263,604 Restricted 79,232,380 69,469,542 79,352,165 112,984,159 125,688,617 Unrestricted 701,870,859 699,555,263 700,899,362 712,685,374 719,451,695 Total Primary Government Net Position 129 CITY OF LA QUINTA Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 2009 2010 2011 2012 2013 Expenditures: Governmental activities: General government 7,836,146$ 34,287,068$ 11,283,358$ 6,183,712$ 4,511,023$ Public safety 19,736,941 21,274,519 21,070,458 20,815,454 21,047,691 Planning and development 7,317,689 5,173,326 18,715,283 6,378,352 2,274,541 Community services 14,808,850 15,923,380 4,735,964 5,093,402 4,986,104 Public works 11,100,833 12,326,726 10,757,279 13,288,521 11,803,133 Contribution to other agencies - - 31,324,064 - - Interest on long-term debt 15,631,438 15,330,603 14,353,359 3,021,496 447,048 Total governmental activities expenditures 76,431,897 104,315,622 112,239,765 54,780,937 45,069,540 Business-type activities: Golf course 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855 Total business-type activities expenditures 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855 80,872,443 108,485,390 116,442,039 58,866,219 49,278,395 Program Revenues: Governmental activities: Charges for services: General government 25,053 21,439 47,696 86,869 38,812 Public safety 1,373,952 1,100,491 1,044,399 1,020,822 927,604 Planning and development 138,391 69,391 74,471 68,470 112,695 Community services 275,178 250,557 210,151 247,397 245,392 Public works 1,308,702 1,124,647 1,086,771 1,080,744 1,209,438 Operating grants and contributions 10,725,280 15,363,650 13,152,942 11,289,673 28,068,940 Capital grants and contributions 10,647,270 5,974,311 3,157,828 9,990,793 Total governmental activities program revenues 24,493,826 23,904,486 18,774,258 23,784,768 30,602,881 Business-type activities: Charges for services: Golf course 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 Capital grants and contributions - - - - - Total business-type activities program revenues 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 27,861,961 27,489,482 22,530,873 27,656,666 34,339,760 Net Revenues (Expenditures): Governmental activities (51,938,071) (80,411,136) (93,465,507) (30,996,169) (14,466,659) Business-type activities (1,072,411) (584,772) (445,659) (213,384) (471,976) (53,010,482) (80,995,908) (93,911,166) (31,209,553) (14,938,635) General Revenues and Other Changes in Net Position: Governmental activities: Taxes: Property taxes 6,653,583 6,278,470 5,942,353 21,370,476 7,043,604 Tax increment 36,702,197 35,390,317 32,569,795 - - Transient occupancy taxes 4,480,467 4,265,438 4,737,968 5,446,883 5,980,684 Sales tax 7,279,513 6,927,388 7,323,835 7,713,741 7,833,545 Franchise taxes 1,533,249 1,585,427 1,607,829 1,687,440 1,669,476 Business license taxes 285,304 302,223 285,270 293,592 292,966 Other taxes 455,089 461,957 437,235 428,963 518,778 Motor vehicle in lieu, unrestricted 3,940,801 3,714,437 3,515,395 3,173,826 3,157,330 Investment income 7,387,244 5,362,684 4,693,974 1,925,255 1,605,718 Gain (loss) on sale of capital assets 21,542 2,330 - - 28,551 Miscellaneous 118,567 477,936 3,211,584 268,644 192,509 Extraordinary gain/loss on dissolution of RDA - - - 158,654,715 (2,189,984) Transfers - - - - - Total governmental activities 68,857,556 64,768,607 64,325,238 200,963,535 26,133,177 Business-type activities: Investment income 3,074 1,252 2,125 1,075 2,225 Gain (loss) on sale of capital assets - - - - - Miscellaneous - - - - 100,799 Transfers - - - - - Total business-type activities 3,074 1,252 2,125 1,075 103,024 Total Primary Government 68,860,630 64,769,859 64,327,363 200,964,610 26,236,201 Changes in Net Position Governmental activities 16,919,485 (15,642,529) (29,140,269) 169,967,366 11,666,518 Business-type activities (1,069,337) (583,520) (443,534) (212,309) (368,952) Total Primary Government 15,850,148 (16,226,049) (29,583,803) 169,755,057 11,297,566 Total Primary Government Expenditures Total Primary Government Program Revenues Fiscal Year Total Net Revenues (Expenditures) Source:City of La Quinta 130 TABLE 2 2014 2015 2016 2017 2018 Expenditures: Governmental activities: 4,830,239$ 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ General government 21,169,423 21,636,149 22,067,603 23,378,824 22,508,088 Public safety 3,098,015 2,212,013 3,359,732 2,882,321 4,352,134 Planning and development 4,130,085 5,992,362 6,214,098 6,584,268 9,231,268 Community services 12,610,994 18,116,732 12,157,245 10,927,160 15,580,975 Public works - ---Contribution to other agencies 405,977 340,716 343,129 309,463 1,468,971 Interest on long-term debt 46,244,733 53,464,704 49,786,811 49,647,763 62,010,610 Total governmental activities expenditures Business-type activities: 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Golf course 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Total business-type activities expenditures 51,216,710 58,518,064 54,160,397 53,613,407 66,329,073 Total Primary Government Expenditures Program Revenues: Governmental activities: Charges for services: 71,042 121,140 192,538 504,127 883,153 General government 1,412,819 1,655,421 1,378,704 341,368 367,848 Public safety 595,980 489,589 467,053 564,327 724,499 Planning and development 1,224,719 307,869 386,824 453,098 442,656 Community services 1,195,703 1,197,069 1,134,630 741,703 1,054,902 Public works 14,587,153 16,829,107 12,213,338 6,187,803 4,259,916 Operating grants and contributions 3,981,286 3,536,444 1,076,145 3,316,153 4,455,060 Capital grants and contributions 23,068,702 24,136,639 16,849,232 12,108,579 12,188,034 Total governmental activities program revenues Business-type activities: Charges for services: 3,481,424 3,561,857 3,621,495 3,446,340 3,567,718 Golf course - 2,872,122 --Capital grants and contributions 3,481,424 6,433,979 3,621,495 3,446,340 3,567,718 Total business-type activities program revenues 26,550,126 30,570,618 20,470,727 15,554,919 15,755,752 Total Primary Government Program Revenues Net Revenues (Expenditures): (23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576) Governmental activities (1,490,553) 1,380,619 (752,091) (519,304) (750,745) Business-type activities (24,666,584) (27,947,446) (33,689,670) (38,058,488) (50,573,321) Total Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: Governmental activities: Taxes: 9,193,753 8,776,491 8,798,296 15,521,335 15,887,015 Property taxes - ---Tax increment 6,307,737 6,637,183 7,835,745 9,433,970 10,752,788 Transient occupancy taxes 8,786,819 8,873,008 9,107,046 10,060,305 18,956,985 Sales tax 1,688,263 1,861,453 1,799,938 1,815,491 1,977,179 Franchise taxes 307,654 306,087 334,465 365,451 345,187 Business license taxes 580,834 530,336 516,964 585,333 718,472 Other taxes 3,291,042 3,486,367 3,651,549 3,813,213 3,941,348 Motor vehicle in lieu, unrestricted 2,190,357 1,981,343 2,390,468 442,710 803,654 Investment income - ---Gain (loss) on sale of capital assets 243,498 296,346 376,193 460,614 649,566 Miscellaneous (6,402,450) --7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA (500,000) (247,739) (115,400) (401,300) (434,000) Transfers 25,687,507 32,500,875 34,695,264 49,441,172 57,222,315 Total governmental activities Business-type activities: 1,567 2,043 4,282 2,028 3,511 Investment income - ---Gain (loss) on sale of capital assets 678,046 915,164 218,823 -Miscellaneous 500,000 247,739 115,400 401,300 434,000 Transfers 1,179,613 1,164,946 338,505 403,328 437,511 Total business-type activities 26,867,120 33,665,821 35,033,769 49,844,500 57,659,826 Total Primary Government Changes in Net Position 2,511,476 3,172,810 1,757,685 11,901,988 7,399,739 Governmental activities (310,940) 2,545,565 (413,586) (115,976) (313,234) Business-type activities 2,200,536 5,718,375 1,344,099 11,786,012 7,086,505 Total Primary Government 131 CITY OF LA QUINTA Changes in Net Position - Governmental Activities Last Ten Fiscal Years (accrual basis of accounting) 2009 2010 2011 2012 2013 Expenditures: General government 7,836,146$ 34,287,068$ 11,283,358$ 6,183,712$ 4,511,023$ Public safety 19,736,941 21,274,519 21,070,458 20,815,454 21,047,691 Planning and development 7,317,689 5,173,326 18,715,283 6,378,352 2,274,541 Community services 14,808,850 15,923,380 4,735,964 5,093,402 4,986,104 Public works 11,100,833 12,326,726 10,757,279 13,288,521 11,803,133 Contribution to other agencies --31,324,064 -- Interest on long-term debt 15,631,438 15,330,603 14,353,359 3,021,496 447,048 Total Governmental Activities Expenditures 76,431,897 104,315,622 112,239,765 54,780,937 45,069,540 Program Revenues: Charges for services: General government 25,053 21,439 47,696 86,869 38,812 Public safety 1,373,952 1,100,491 1,044,399 1,020,822 927,604 Planning and development 138,391 69,391 74,471 68,470 112,695 Community services 275,178 250,557 210,151 247,397 245,392 Public works 1,308,702 1,124,647 1,086,771 1,080,744 1,209,438 Operating grants and contributions 10,725,280 15,363,650 13,152,942 11,289,673 28,068,940 Capital grants and contributions 10,647,270 5,974,311 3,157,828 9,990,793 4,115,238 24,493,826 23,904,486 18,774,258 23,784,768 34,718,119 Net Revenues (Expenditures)(51,938,071) (80,411,136) (93,465,507) (30,996,169) (10,351,421) General Revenues and Other Changes in Net Position: Taxes: Property taxes 6,653,583 6,278,470 5,942,353 21,370,476 7,043,604 Tax increment 36,702,197 35,390,317 32,569,795 -- Transient occupancy taxes 4,480,467 4,265,438 4,737,968 5,446,883 5,980,684 Sales tax 7,279,513 6,927,388 7,323,835 7,713,741 7,833,545 Franchise tax 1,533,249 1,585,427 1,607,829 1,687,440 1,669,476 Business license taxes 285,304 302,223 285,270 293,592 292,966 Other tax 455,089 461,957 437,235 428,963 518,778 Motor vehicle in lieu, unrestricted 3,940,801 3,714,437 3,515,395 3,173,826 3,157,330 Investment income 7,387,244 5,362,684 4,693,974 1,925,255 1,605,718 Gain (loss) on sale of capital assets 21,542 2,330 --28,551 Miscellaneous 118,567 477,936 3,211,584 268,644 192,509 Extraordinary gain/loss on dissolution of RDA ---158,654,715 (2,189,984) Transfers ----- Total Governmental Activities 68,857,556 64,768,607 64,325,238 200,963,535 26,133,177 Changes in Net Position 16,919,485 (15,642,529) (29,140,269) 169,967,366 15,781,756 Fiscal Year Total Governmental Activities Program Revenue Source:City of La Quinta 132 TABLE 3 2014 2015 2016 2017 2018 Expenditures: 4,830,239$ 5,166,732$ 5,645,004$ 5,565,727$ 8,869,174$ General government 21,169,423 21,636,149 22,067,603 23,378,824 22,508,088 Public safety 3,098,015 2,212,013 3,359,732 2,882,321 4,352,134 Planning and development 4,130,085 5,992,362 6,214,098 6,584,268 9,231,268 Community services 12,610,994 18,116,732 12,157,245 10,927,160 15,580,975 Public works -----Contribution to other agencies 405,977 340,716 343,129 309,463 1,468,971 Interest on long-term debt 46,244,733 53,464,704 49,786,811 49,647,763 62,010,610 Total Governmental Activities Expenditures Program Revenues: Charges for services: 71,042 121,140 192,538 504,127 883,153 General government 1,412,819 1,655,421 1,378,704 341,368 367,848 Public safety 595,980 489,589 467,053 564,327 724,499 Planning and development 1,224,719 307,869 386,824 453,098 442,656 Community services 1,195,703 1,197,069 1,134,630 741,703 1,054,902 Public works 14,587,153 16,829,107 12,213,338 6,187,803 4,259,916 Operating grants and contributions 3,981,286 3,536,444 1,076,145 3,316,153 4,455,060 Capital grants and contributions 23,068,702 24,136,639 16,849,232 12,108,579 12,188,034 Total Governmental Activities Program Revenues (23,176,031) (29,328,065) (32,937,579) (37,539,184) (49,822,576) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: Taxes: 9,193,753 8,776,491 8,798,296 15,521,335 15,887,015 Property taxes -----Tax increment 6,307,737 6,637,183 7,835,745 9,433,970 10,752,788 Transient occupancy taxes 8,786,819 8,873,008 9,107,046 10,060,305 18,956,985 Sales tax 1,688,263 1,861,453 1,799,938 1,815,491 1,977,179 Franchise tax 307,654 306,087 334,465 365,451 345,187 Business license taxes 580,834 530,336 516,964 585,333 718,472 Other tax 3,291,042 3,486,367 3,651,549 3,813,213 3,941,348 Motor vehicle in lieu, unrestricted 2,190,357 1,981,343 2,390,468 442,710 803,654 Investment income --376,193 460,614 649,566 Gain (loss) on sale of capital assets 243,498 296,346 ---Miscellaneous (6,402,450) --7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA (500,000) (247,739) (115,400) (401,300) (434,000) Transfers 25,687,507 32,500,875 34,695,264 49,441,172 57,222,315 Total Governmental Activities 2,511,476 3,172,810 1,757,685 11,901,988 7,399,739 Changes in Net Position 133 CITY OF LA QUINTA Changes in Net Position - Business-type Activities Last Ten Fiscal Years (accrual basis of accounting) 2009 2010 2011 2012 2013 Expenditures: Golf course 4,440,546$ 4,169,768$ 4,202,274$ 4,085,282$ 4,208,855$ Total Business-Type Activities Expenditures 4,440,546 4,169,768 4,202,274 4,085,282 4,208,855 Program revenues: Charges for services: Golf course 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 Capital grants and contributions ----- 3,368,135 3,584,996 3,756,615 3,871,898 3,736,879 Net Revenues (Expenditures)(1,072,411) (584,772) (445,659) (213,384) (471,976) General Revenues and Other Changes in Net Position: Investment income 3,074 1,252 2,125 1,075 2,225 Gain (loss) on sale of capital assets ----- Miscellaneous ----100,799 Transfers ----- Capital contributions ----- Total Business-Type Activities 3,074 1,252 2,125 1,075 103,024 Changes in Net Position (1,069,337) (583,520) (443,534) (212,309) (368,952) Total Business-Type Activities Program Revenues Fiscal Year Source:City of La Quinta 134 TABLE 4 2014 2015 2016 2017 2018 Expenditures: 4,971,977$ 5,053,360$ 4,373,586$ 3,965,644$ 4,318,463$ Golf course 4,971,977 5,053,360 4,373,586 3,965,644 4,318,463 Total Business-Type Activities Expenditures Program revenues: Charges for services: 3,481,424 3,561,857 3,621,495 3,446,340 3,567,718 Golf course -2,872,122 ---Capital grants and contributions 3,481,424 6,433,979 3,621,495 3,446,340 3,567,718 (1,490,553) 1,380,619 (752,091) (519,304) (750,745) Net Revenues (Expenditures) General Revenues and Other Changes in Net Position: 1,567 2,043 4,282 2,028 3,511 Investment income -----Gain (loss) on sale of capital assets 678,046 915,164 218,823 --Miscellaneous 500,000 247,739 115,400 401,300 434,000 Transfers -----Capital contributions 1,179,613 1,164,946 338,505 403,328 437,511 Total Business-Type Activities (310,940) 2,545,565 (413,586) (115,976) (313,234) Changes in Net Position Total Business-Type Activities Program Revenues 135 CITY OF LA QUINTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2009 (1) 2010 (1) 2011 2012 2013 General fund: Nonspendable: Prepaid costs 12,424$ 9,030$ 23,260$ 27,481$ 11,786$ Land held for resale - - 8,320,000 8,320,000 8,320,000 Advances to other funds 46,137,692 57,897,671 15,373,104 15,417,929 15,509,691 Deposits 9,830 9,830 9,967 118,516 4,830 Due from Other Governments - - - - 41,378,966 Restricted for: Debt service - - 169,631 173,426 - Committed: Emergency Reserve(2)18,201,948 17,774,648 18,018,595 17,516,295 16,034,995 Natural Disaster Reserve(2) Economic Disaster Reserve(2) Post retirement health benefits - 1,258,059 1,258,059 1,523,401 1,523,401 Capital Replacement Reserve(2)2,144,085 - - - 2,848,737 Cash Flow Reserve(2)- - - - - Pension Trust Carryovers - - - - - Other - - - - - Assigned: Continuing appropriations 3,485,747 1,555,176 1,768,494 1,041,172 1,013,533 Public Safety (Note 12b)- - - - - Sales Tax Reserve (Note 12 b) Capital Projects (Note 12b)- - - - - Unassigned 22,335,655 13,525,704 48,140,444 47,737,861 5,926,651 Total general fund 92,327,381 92,030,118 93,081,554 91,876,081 92,572,590 All other governmental funds: Nonspendable: Prepaid costs 19,197 7,740 10,563 12,875 10,310 Notes and loans 2,067,028 2,088,709 2,081,614 2,065,611 2,062,589 Advances to other funds 4,321,119 4,293,166 4,569,188 - - Deposits 4,540 6,400 6,000 13,600 13,600 Restricted: Planning and development projects 25,807,752 31,032,124 34,018,930 10,767,199 3,730,533 Public safety 245,468 48,852 96,364 245,187 258,968 Community services 11,387,631 11,675,417 10,248,314 11,162,057 11,626,441 Public works 7,539,181 448,731 396,355 145,823 262,754 Capital Projects 50,556,856 53,123,856 58,111,106 4,089,156 1,392,581 Debt service 5,490,098 3,890 4,001,426 2,534 2,234 Assigned: Continuing appropriations 2,000 - - - - Unassigned (19,339,823) (33,626,907) (13,250,398) (13,248,593) (13,179,196) Total all other governmental funds 88,101,047 69,101,978 100,289,462 15,255,449 6,180,814 Total Governmental Funds 180,428,428 161,132,096 193,371,016 107,131,530 98,753,404 Fiscal Year Notes: (1)In Fiscal Year 2009-2010, the City implemented GASB 54 which changed the reporting requirements for fund balances in the financial statements. This table has been updated to reflect the impact of GASB 54 not only for Fiscal Year 2009-10 but for all prior years. (2) In Fiscal year 2017-18, the City adopted a reserves policy which modifed, added and/ or eliminated reserve category names. Emergency Reserves are now split into Natural Disaster and Economic Disaster, Working Capital Reserve was re-named Cash Flow Reserve, Capital Replacement and Pension Trust were added. Source:City of La Quinta 136 TABLE 5 2014 2015 2016 2017 2018 General fund: Nonspendable: 1,500$15,653$ 204,589$ 10,578$ 90,657$ Prepaid costs 8,320,000 8,320,000 8,320,000 8,320,000 8,320,000 Land held for resale 15,163,183 14,943,098 14,974,800 15,022,660 14,954,085 Advances to other funds 4,830 33,985 --Deposits 34,976,516 26,715,575 25,105,681 29,154,040 29,611,707 Due from Other Governments Restricted for: ----Debt service Committed: 16,034,995 15,372,600 15,576,000 16,534,000 Emergency Reserve(2) 7,400,000 Natural Disaster Reserve(2) 8,140,000 Economic Disaster Reserve(2) 1,523,401 1,523,401 1,523,400 1,523,400 Post retirement health benefits 1,507,429 1,727,390 2,302,000 -5,000,000 Capital Replacement Reserve(2) 2,836,820 3,843,150 3,894,000 4,134,000 5,000,000 Cash Flow Reserve(2) 2,000,000 Pension Trust 356,438 476,400 4,274,046 120,000 2,186,500 Carryovers ----Other Assigned: 209,000 ---Continuing appropriations ---9,371,699 9,754,327 Public Safety (Note 12b) 5,169,970 Sales Tax Reserve (Note 12 b) ---6,322,570 4,996,815 Capital Projects (Note 12b) 10,699,641 13,837,312 13,822,012 16,949,526 19,199,506 Unassigned 91,633,753 86,808,564 89,996,528 107,462,473 121,823,567 Total general fund All other governmental funds: Nonspendable: --8,422 10,349 Prepaid costs ----Notes and loans ----Advances to other funds ----Deposits Restricted: 5,970,006 13,108,499 18,211,200 22,664,093 22,607,600 Planning and development projects 274,274 301,843 189,988 83,506 401,557 Public safety 12,459,516 10,711,704 9,872,124 10,040,222 10,016,652 Community services 1,571,163 1,129,697 1,250,827 1,546,505 2,033,627 Public works 1,590,168 3,873,699 3,597,221 4,490,534 4,204,168 Capital Projects ----Debt service Assigned: ----Continuing appropriations (12,370,462) (12,703,744) (11,655,344) (11,423,008) (11,405,877) Unassigned 9,494,665 16,421,698 21,474,438 27,412,201 27,857,727 Total all other governmental funds 101,128,418 103,230,262 111,470,966 134,874,674 149,681,294 Total Governmental Funds 137 CITY OF LA QUINTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2009 2010 2011 2012 2013 Revenues: Taxes 99,816,072$ 93,831,918$ 88,498,457$ 53,632,023$ 23,506,679$ Assessments 927,816 966,639 956,048 950,292 954,058 Licenses and permits 871,167 472,409 547,071 482,831 566,510 Intergovernmental 18,679,355 19,473,076 19,005,643 15,875,582 15,464,942 Charges for services 673,779 484,043 501,418 635,111 625,813 Use of money and property 7,043,646 5,338,679 4,670,732 1,914,518 1,582,762 FInes and Forfeitures 240,591 395,823 327,751 303,773 18,377,253 Developer participation 2,243,785 273,739 945,805 903,144 1,226,825 Miscellaneous 720,185 608,342 319,763 276,327 491,267 Total Revenues 131,216,396 121,844,668 115,772,688 74,973,601 62,796,109 Expenditures Current: General government 7,230,436 30,220,882 10,885,519 4,881,922 4,587,888 Public safety 18,946,866 20,116,936 19,826,372 19,669,517 20,168,038 Planning and development 7,261,835 6,028,492 8,460,420 4,314,646 27,514,768 Community services 4,698,985 4,204,626 4,147,758 4,086,686 4,411,536 Public works 6,324,055 6,862,887 4,808,060 6,192,733 5,067,370 Capital projects 32,363,859 14,514,910 21,287,775 13,335,989 8,622,783 Debt service: Principal retirement 6,319,580 6,616,412 7,011,261 7,066,726 556,871 Interest and fiscal charges 15,348,598 15,357,968 15,037,919 6,701,079 437,678 Payment to bond escrow - - - - - Payments under pass-through obligations 42,426,670 38,710,894 35,607,089 16,755,441 - Total Expenditures 140,920,884 142,634,007 127,072,173 83,004,739 71,366,932 (9,704,488) (20,789,339) (11,299,485) (8,031,138) (8,570,823) Other financing sources (uses): Issuance of tax allocation bonds - - 6,000,000 - - Issuance of revenue bonds - - 28,850,000 - - Transfers in 40,502,929 30,386,372 61,657,034 12,554,752 29,841,053 Transfers out (40,527,930) (28,893,365) (61,652,479) (12,580,120) (29,841,053) Other debts issued 2,332,752 - - - - Capital leases - - - - 71,045 Proceeds from sale of capital assets - - 8,683,850 875,275 121,652 Total Other Financing Sources (Uses)2,307,751 1,493,007 43,538,405 849,907 192,697 Extraordinary gain/loss on dissolution of RDA - - - (79,058,255) - Net Change in Fund Balances (7,396,737) (19,296,332) 32,238,920 (86,239,486) (8,378,126) 59.0%47.6%53.0%43.7%1.6% Fiscal Year Excess (Deficiency) of Revenues Over (Under) Expenditures Debt Service as a Percentage of Noncapital Expenditures (1) Notes: (1) The capitalizable expenditures were derived from the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds. Source:City of La Quinta 138 TABLE 6 2014 2015 2016 2017 2018 Revenues: 27,192,089$ 26,678,471$ 28,057,989$ 41,832,117$ 44,931,250$ Taxes 951,181 940,221 944,050 953,699 950,541 Assessments 953,540 1,356,978 1,161,820 1,118,911 1,394,820 Licenses and permits 16,506,666 15,702,943 14,960,676 4,870,334 12,555,259 Intergovernmental 1,238,277 1,341,438 1,332,541 1,021,336 1,279,864 Charges for services 2,175,048 1,950,957 7,475,742 4,659,301 2,388,683 Use of money and property 838,972 1,956,452 28,459 348,345 375,390 FInes and Forfeitures 3,059,254 2,803,681 1,441,075 1,042,568 1,534,628 Developer participation 575,001 580,843 992,282 289,047 1,196,057 Miscellaneous 53,490,028 53,311,984 56,394,634 56,135,658 66,606,492 Total Revenues Expenditures Current: 4,068,827 5,050,425 5,267,024 5,845,197 7,737,111 General government 21,189,086 21,664,472 22,125,962 23,377,755 22,508,088 Public safety 1,748,477 2,097,525 3,294,259 2,549,779 4,310,589 Planning and development 4,011,432 4,798,123 4,983,038 4,626,401 5,236,083 Community services 4,617,050 5,283,309 4,101,210 4,025,958 4,146,135 Public works 7,974,747 11,097,186 7,209,874 6,859,428 9,015,861 Capital projects Debt service: 558,019 594,383 632,615 651,625 666,988 Principal retirement 411,010 348,334 346,137 307,600 1,460,371 Interest and fiscal charges - - - - Payment to bond escrow - - - - Payments under pass-through obligations 44,578,648 50,933,757 47,960,119 48,243,743 55,081,226 Total Expenditures 8,911,380 2,378,227 8,434,515 7,891,915 11,525,266 Other financing sources (uses): - - - - Issuance of tax allocation bonds - - - - Issuance of revenue bonds 4,201,763 12,037,331 6,420,538 21,503,514 7,432,340 Transfers in (4,335,679) (12,322,714) (6,614,349) (21,904,814) (7,775,107) Transfers out - - - - Other debts issued - 9,000 - - Capital leases - - - - Proceeds from sale of capital assets (133,916) (276,383) (193,811) (401,300) (342,767) Total Other Financing Sources (Uses) (6,402,450) - - 7,344,050 3,624,121 Extraordinary gain/loss on dissolution of RDA 2,375,014 2,101,844 8,240,704 14,834,665 14,806,620 Net Change in Fund Balances 2.6%2.2%2.4%2.45%3.26% Debt Service as a Percentage of Noncapital Expenditures (1) Excess (Deficiency) of Revenues Over (Under) Expenditures 139 This page left blank intentionally. City of La Quinta TABLE 7 Tax Revenue by Source Last Ten Fiscal Years (in dollars) Fiscal Year Property Tax (2) Tax Increment (1) Transient Occupancy Tax Sales Tax Franchise Tax Business License Tax Document Transfer Tax Total 2009 6,653,583$ 36,702,197$ 4,480,467$ 7,279,513$ 1,533,249$ 285,304$ 455,089$ 57,389,402$ 2010 6,278,470 35,390,317 4,265,438 6,927,388 1,585,427 302,223 461,957 55,211,220 2011 5,942,353 32,569,795 4,737,968 7,323,835 1,607,829 285,270 437,235 52,904,285 2012 21,370,476 - 5,446,883 7,713,741 1,687,440 293,592 428,963 36,941,095 2013 7,043,604 - 5,980,684 7,833,545 1,669,476 292,966 518,778 23,339,053 2014 9,193,753 - 6,307,737 8,786,819 1,688,263 307,654 580,834 26,865,060 2015 8,776,491 - 6,637,183 8,873,008 1,861,453 306,087 530,336 26,984,558 2016 8,798,296 - 7,835,745 9,107,046 1,799,938 334,465 516,964 28,392,454 2017 15,521,335 - 9,433,970 10,060,305 1,815,491 365,451 585,333 37,781,885 2018 15,887,015 - 10,752,788 18,956,985 1,977,179 345,187 718,472 48,637,626 Notes: (1)The tax increment received was a result of the activity of the Redevelopment Agency. On June 28, 2011, California Governor Jerry Brown signed ABx1 26, the Redevelopment Dissolution Act. The Act was upheld by the California Supreme Court on Dec. 29, 2011, and theagency was effectively dissolved Feb. 1, 2012. (2) Starting in 2017, the revenue collected by the County that is remitted to the City for fire services was included in the property tax number. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tax Revenue by Source (Excluding Tax Increment) (in millions) Property Tax (2)Transient Occupancy Tax Sales Tax Franchise Tax Business License Tax Document Transfer Tax 140 City of La Quinta TABLE 8 Top 25 Sales Tax Producers Current Year and Ten Years Ago (in dollars) Arco AM PM Service Stations Bed Bath & Beyond Home Furnishings Best Buy Electronics/Appliance Stores Chevrolet Cadillac of La Quinta New Motor Vehicle Dealers Circle K Service Stations Cliffhouse Fine Dining Costco Discount Dept Stores Hobby Lobby Specialty Stores Home Depot Building Materials Hyundai of La Quinta New Motor Vehicle Dealers Kia of La Quinta New Motor Vehicle Dealers Kohls Department Stores La Quinta Resort & Club Hotels-Liquor Marshalls Family Apparel Ross Family Apparel Sams Club Discount Dept Stores Stater Bros Grocery Stores Stein Mart Department Stores Target Discount Dept Stores Thane Marketing Business Services Tower Mart Service Stations Torre Nissan New Motor Vehicle Dealers USA Gas Service Stations Walmart Supercenter Discount Dept Stores 67.83%66.40% Champion Cadillac Chevrolet Circle K Circuit City Costco G & M Oil Fiscal Year 2008-09 Electronics/Appliance Stores Arco Bed Bath & Beyond Best Buy Service Stations Home Furnishings Business Name (1) Home Depot La Quinta Shell Lowe's Building Materials Service Stations Building Materials New Motor Vehicle Dealers Service Stations Electronics/Appliance Stores Discount Dept Stores Service Stations Percent of Fiscal Year Total Paid by Top 25 Accounts:Percent of Fiscal Year Total Paid by Top 25 Accounts: Vons Walmart Supercenter Grocery Stores Torre Nissan Discount Dept Stores Business Category Stater Bros Stein Mart Stuft Pizza Bar and Grill Target TJ Maxx In N Out Burgers Kohls La Quinta Resort & Club Lowe's Ross Hyundai of La Quinta New Motor Vehicle Dealers Casual Dining Discount Dept Stores Family Apparel Building Materials Family Apparel Grocery Stores Department Stores Marshalls Fiscal Year 2017-18 Business CategoryBusiness Name (1) New Motor Vehicle Dealers Quick-Service Restaurants Department Stores Hotels-Liquor Family Apparel Notes: (1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account. Top 25 businesses listed for state Bradley-Burns sales tax allocation only. For busines listings for local Measure G, see next page. Sales tax revenue chart includes total remitted for both. $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales Tax Revenue (in millions) 141 City of La Quinta TABLE 8 Top 25 Sales Tax Producers Current Year and Ten Years Ago (in dollars) Amazon.com General Merchandise Arco AM PM Service Stations Bed Bath & Beyond Home Furnishings Best Buy Electronics/Appliance Stores Circle K Service Stations Costco Discount Dept Stores Dept. of Motor Vehicles Allocation Used Automotive Dealers Desert European Motor Cars New Motor Vehicle Dealers Fiesta Ford New Motor Vehicle Dealers Home Depot Building Materials Mathis Brothers Furniture Home Furnishings Stater Bros Grocery Stores Stein Mart Department Stores Tower Mart Service Stations 50.48% Calendar Year 2017 Fiscal Year 2008-09 Business Name (1)Business Category Business Name Business Category Building Materials Marshalls Family Apparel I-10 Toyota New Motor Vehicle Dealers Kohls Department Stores La Quinta Resort & Club Hotels-Liquor Percent of Calendar Year Total Paid by Top 25 Accounts: Measure G was passed in November 2016 with implementation on April 1, 2017. Ten-year is data not available. Torre Nissan New Motor Vehicle Dealers Verizon Wireless Electronics/Appliance Stores Walmart Supercenter Discount Dept Stores Target Discount Dept Stores TJ Maxx Family Apparel Ross Family Apparel Lowe's Notes: (1)Firms are listed alphabetically. State law does not allow for the disclosure of the sales tax revenue amounts by account. Source:HDL, Coren & Cone 142 City of La Quinta Taxable Sales by Category (1) Last Ten Calendar Years (in thousands) 2008 2009 2010 2011 2012 22,019$ 22,061$ 22,143$ 23,223$ 24,430$ 226,032 209,394 206,153 211,249 220,970 27,865 26,196 25,351 25,197 25,854 83,310 80,172 79,646 86,433 94,859 74,604 59,747 60,740 62,879 65,445 70,645 33,576 43,566 58,938 62,668 54,413 39,127 46,059 54,342 56,001 111,210 99,779 94,532 97,477 99,028 154,186 120,668 120,291 132,417 130,421 824,284 690,720 698,481 752,155 779,676 Auto dealers and supplies Service stations Other retail stores All other outlets Total Building materials Calendar Year Eating and drinking places Apparel stores General merchandise Food stores Notes: (1)Due to confidentiality issues preventing the disclosure of the top ten largest sales tax payers by business name, this categorical list has been provided as an alternative source of information regarding the City of La Quinta's sales tax revenue. Source:HDL. Coren & Cone Apparel stores 3% General merchandise 27% Food stores 3% Eating and drinking places 10% Building materials 9% Auto dealers and supplies 9% Service stations 7% Other retail stores 13% All other outlets 19% Taxable Sales Calendar Year 2008 143 TABLE 9 2013 2014 2015 2016 2017 25,741$ 25,461$ 25,115$ 26,280$ 31,822$ 223,324 216,871 208,189 206,808 222,767 26,394 25,748 22,845 25,359 25,964 97,662 101,647 106,216 115,974 117,064 Eating and drinking places 68,606 73,087 75,658 78,299 83,383 72,839 84,826 87,440 83,010 81,264 Auto dealers and supplies 52,093 47,541 40,777 34,566 37,558 100,811 101,721 105,284 107,648 104,834 142,049 150,746 155,173 172,135 180,360 809,519 827,648 826,697 850,079 885,016 Total Service stations Other retail stores All other outlets Apparel stores General merchandise Food stores Building materials Apparel stores 4% General merchandise 25% Food stores 3% Eating and drinking places 13% Building materials 10% Auto dealers and supplies 9% Service stations 4% Other retail stores 12% All other outlets 20% Taxable Sales Calendar Year 2017 144 This page left blank intentionally. CITY OF LA QUINTA TABLE 10 Assessed Value of Taxable Property Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30,Residential Commercial Agriculture (4)Other (1) Unsecured Property (2) Home Owner Exemption(5) Taxable Assessed Value Direct Rate (3) 2009 10,034,763,263 827,032,029 20,432,889 1,475,352,236 112,389,346 (152,860,511) 12,469,969,763 1.0000 2010 9,483,530,068 823,821,531 20,845,624 1,358,176,147 120,977,122 (154,942,598) 11,807,350,492 1.0000 2011 8,870,471,785 771,419,124 20,792,716 1,143,332,514 118,651,054 (157,742,188) 10,924,667,193 1.0000 2012 8,612,579,049 725,788,432 20,944,939 920,025,235 104,880,163 (161,420,137) 10,384,217,818 1.0000 2013 8,510,574,371 735,622,855 19,644,835 954,074,172 106,176,279 (164,227,296) 10,326,092,512 1.0000 2014 8,959,562,854 743,340,208 20,374,889 945,004,639 108,387,013 (167,489,253) 10,776,669,603 1.0000 2015 10,116,938,804 1,061,204,501 65,769,114 77,926,274 106,672,900 (49,232,400) 11,379,279,193 1.0000 2016 10,634,834,332 1,088,406,355 64,533,443 79,120,572 113,142,376 (49,130,200) 11,930,906,878 1.0000 2017 11,071,273,174 1,195,736,674 57,463,638 71,281,946 110,768,767 (49,088,200) 12,457,435,999 1.0000 2018 11,462,635,317 1,227,709,957 59,538,912 61,350,883 105,984,928 (49,700,000) 12,867,519,997 1.0000 City of La Quinta, Tax District 02-2375 Notes: (1)Other includes dry farm, government owned, institutional, irrigated, miscellaneous, recreational, vacant, cross reference and unknown. For 2016, prior years 2007through 2015 were adjusted to match current reporting categories for consistency. (2)Prior years 2007 through 2015 adjusted to match current reporting for consistency.(3)In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of theproperty being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With fewexceptions,property is only re-assessed at the time that it is sold to a new owner; at which time the new assessed value is the purchase price of the property sold. The assessedvaluation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitationsdescribed above. (4)In 2016 (and going forward) data will be obtained from California Municipal and The Assessor Controller's Office. The existing column headers were slightly modified toaccommodate the property type classifications. The column labeld agriculture was formerly "industrial". (5)Prior to 2015, this column also included Exempt Property Valuations Source:: Cal Muni 2016/17 and 2017/18; County of Riverside Assessor Combined Tax Rolls Equalized Auditor and Assessor's Net $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Taxable Assessed Value (in millions) 145 CITY OF LA QUINTA Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years 2009 (1)2010 (1)2011 (1)2012 (1)2013 (1)2014 (1)2015 (1)2016 (1)2017 (1)2018 Direct Rates: City of La Quinta 0.0506 0.0506 0.0734 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 0.0760 Redevelopment agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Redevelopment agency Project Area 2 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 County of Riverside 0.2586 0.2586 0.2318 0.1957 0.1958 0.1958 0.1958 0.1958 0.1958 0.1958 County Free Library 0.0284 0.0284 0.0280 0.0252 0.0253 0.0253 0.0253 0.0253 0.0253 0.0253 County Structure Fire Protection 0.0610 0.0610 0.0602 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 0.0544 Coachella Valley Unified School District 0.0000 0.0000 0.0000 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 0.4322 Desert Sands Unified School 0.3765 0.3765 0.3716 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Desert Community College District 0.0782 0.0782 0.0772 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 0.0698 Riverside County Office of Education 0.0426 0.0426 0.0420 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 0.0380 Riverside County Regional Park & Open Sp 0.0000 0.0000 0.0000 0.0040 0.0039 0.0039 0.0039 0.0039 0.0040 0.0040 CV Public Cemetery 0.0035 0.0035 0.0035 0.0032 0.0031 0.0031 0.0031 0.0031 0.0031 0.0031 CV Mosquito & Vector Control 0.0142 0.0142 0.0141 0.0127 0.0127 0.0127 0.0127 0.0126 0.0126 0.0126 Desert Recreation District 0.0215 0.0215 0.0213 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 0.0192 Coachella Valley Water District 0.0284 0.0284 0.0281 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 0.0254 CV Resource Conservation 0.0004 0.0004 0.0004 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 CVWD Improvement District 1 0.0000 0.0000 0.0131 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 0.0118 CVWD Storm Water Unit 0.0360 0.0360 0.0355 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 0.0321 Total Direct Rate (3)1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Tax Rate Area 020-005 020-005 020-005 020-005 020-005 020-005 020-005 020-160 020-160 020-160 Coachella Valley Unified School District 0.0595 0.0725 0.0933 0.0749 0.0797 0.1492 0.1492 0.1322 0.1660 0.1761 Desert Sands Unified School 0.0799 0.0811 0.1004 0.1147 0.1116 0.1095 0.1098 0.1092 0.0860 0.0725 Coachella Valley Water District 0.0464 0.0660 0.0860 0.0800 0.0800 0.1000 0.1000 0.1000 0.1000 0.1000 Desert Community College District 0.0199 0.0200 0.0200 0.0200 0.0200 0.0200 0.0233 0.0209 0.0204 0.0403 Total Overlapping Rate 0.2057 0.2395 0.2996 0.2895 0.2912 0.3787 0.3823 0.3622 0.3724 0.3889 Total Direct and Overlapping Rate 1.2057 1.2395 1.2996 1.2895 1.2912 1.3787 1.3823 1.3622 1.3724 1.3889 Overlapping Rates (4) : City Non-Project Area Notes:(1)Direct rate from Tax Rate Area (TRA) 020-160 and overlapping rates provided by Hdl Coren & Cone, data source Riverside County Assessor 2008/09- 2017/18 Annual Tax Increment Tables. (2)Direct rate taken from an analysis of the TRA in the project area and do not include State ERAF deductions and overlapping rates provided by California Municipal Statistics (3)In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount for direct taxes. This 1% is shared by all taxing agencies for which the subject property resides within. (4)Overlapping rates are based upon a single tax rate area only. Source:County of Riverside Auditor Controller's Office; HDL, Coren & Cone 146 TABLE 11 2008 (2)2009 (2)2010 (2)2011 (2)2012 (2)2008 (2)2009 (2)2010 (2)2011 (2)2012 (2) Direct Rates: 0.0000 0.0152 0.0036 0.0049 0.0524 0.0000 0.0000 0.0000 0.0019 0.0499 City of La Quinta 0.5150 0.5245 0.5432 0.5310 0.0000 0.0000 0.0000 0.0000 0.0000 Redevelopment agency Project Area 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.2910 0.3193 0.3174 0.3059 0.0000 Redevelopment agency Project Area 2 0.2619 0.2325 0.2501 0.2471 0.2683 0.2617 0.2516 0.2537 0.2511 0.2553 County of Riverside 0.0276 0.0277 0.0276 0.0282 0.0294 0.0280 0.0280 0.0280 0.0286 0.0280 County Free Library 0.0595 0.0595 0.0595 0.0607 0.0633 0.0603 0.0603 0.0603 0.0616 0.0602 County Structure Fire Protection 0.0020 0.0149 0.0167 0.0182 0.0000 0.0020 0.0000 0.0000 0.0000 0.0000 Coachella Valley Unified School District 0.0140 0.0695 0.0568 0.0637 0.3905 0.1970 0.1860 0.1859 0.1930 0.3716 Desert Sands Unified School 0.0720 0.0177 0.0152 0.0166 0.0812 0.0410 0.0386 0.0386 0.0401 0.0772 Desert Community College District 0.0180 0.0093 0.0027 0.0038 0.0442 0.0220 0.0210 0.0210 0.0218 0.0420 Riverside County Office of Education 0.0030 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Riverside County Regional Park & Open Space 0.0000 0.0008 0.0002 0.0003 0.0037 0.0000 0.0000 0.0000 0.0001 0.0035 CV Public Cemetery 0.0120 0.0112 0.0111 0.0112 0.0148 0.0140 0.0141 0.0141 0.0141 0.0140 CV Mosquito & Vector Control 0.0010 0.0044 0.0014 0.0019 0.0223 0.0060 0.0053 0.0053 0.0059 0.0212 Desert Recreation District 0.0010 0.0127 0.0120 0.0124 0.0295 0.0760 0.0757 0.0757 0.0740 0.0281 Coachella Valley Water District 0.0130 0.0001 0.0000 0.0000 0.0004 0.0000 0.0000 0.0000 0.0000 0.0004 CV Resource Conservation 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0005 0.0131 CVWD Improvement District 1 0.0000 0.0000 0.0000 0.0000 0.0000 0.0010 0.0000 0.0000 0.0014 0.0355 CVWD Storm Water Unit 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Direct Rate (3) 020-089 020-089 020-089 020-089 020-089 020-144 020-144 020-144 020-144 020-144 Tax Rate Area 0.0571 0.0595 0.0725 0.0933 0.0749 0.0571 0.0595 0.0725 0.0933 0.0749 Coachella Valley Unified School District 0.0756 0.0799 0.0811 0.1004 0.1147 0.0756 0.0799 0.0811 0.1004 0.1147 Desert Sands Unified School 0.0507 0.0464 0.0660 0.0860 0.0800 0.0507 0.0464 0.0660 0.0860 0.0800 Coachella Valley Water District 0.0199 0.0199 0.0200 0.0200 0.0200 0.0199 0.0199 0.0200 0.0200 0.0200 Desert Community College District 0.2033 0.2057 0.2395 0.2996 0.2895 0.2033 0.2057 0.2395 0.2996 0.2895 Total Overlapping Rate 1.2033 1.2057 1.2395 1.2997 1.2895 1.2033 1.2057 1.2395 1.2996 1.2895 Total Direct and Overlapping Rate Redevelopment Project Area 2Redevelopment Project Area 1 Overlapping Rates (4) : 147 CITY OF LA QUINTA TABLE 12 Principal Property Taxpayers Current Year and Ten Years Ago (in dollars) Rank Taxable Assessed Value (1) Percent of Total City Taxable Assessed Value Rank Taxable Assessed Value (1) Percent of Total City Taxable Assessed Value 1 196,541,854$ 1.53% - 2 64,614,031 0.50% 2 123,545,144$ 3 60,391,969 0.47% 6 41,623,109 0.33% 4 47,350,687 0.37% 9 32,260,312 5 34,369,793 0.27% - Lennar Homes of California Inc 6 33,234,962 0.26%- 7 31,574,410 0.25% 3 63,848,760 0.51% 8 30,598,539 0.24% 4 50,062,387 0.40% 9 25,888,873 0.20%- 10 25,801,172 0.20%- - - 1 351,987,688 2.82% - - 5 42,929,365 0.34% - - 7 40,240,602 0.32% - - 10 33,809,065 0.26% - - 8 32,130,633 0.27% Total 550,366,290$ 4.28%812,437,065 5.27% ND La Quinta Partners Griffin Ranch Toll California Village Resort Health Care REIT Inc KSL Desert Resort Aventine Development Walmart Real Estate Business Trust Taxpayer Fiscal Year 2008-09 Town and Country Partners Coral Option I LLC TD Desert Development LP Fiscal Year 2017-18 BRE Iconic LQR Owner Inland American La Quinta Pavilion East of Madison (1) Taxable valuations include secured and unsecured Source: HdL Coren & Cone; Riverside County Assessor 2016/17 Combined Tax Rolls and the SBE Non-Unitary Tax RollP (Preliminary) BRE Iconic LQR Owner TD Desert Development LP Coral Option I LLC Inland American La Quinta Pavilion Town and Country Partners Lennar Homes of California Inc East of Madison Walmart Real Estate Business Trust Health Care REIT Inc Principal Property Tax Payers (FY 2016-17) 148 CITY OF LA QUINTA TABLE 13 Property Tax Levies and Collections Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30 Taxes Levied for the Fiscal Year (1)Amount Percent of Levy Collections in Subsequent Years (2)Amount (3) Percent of Levy 2009 50,547,069 51,409,191 101.71%600,827 52,010,018 102.89% 2010 47,263,321 48,396,941 102.40%133,839 48,530,780 102.68% 2011 43,272,411 44,090,072 101.89%34,356 44,124,428 101.97% 2012 69,307,476 37,885,360 54.66%181,381 38,066,741 54.92% 2013 5,706,535 5,823,575 102.05%180,723 6,004,298 105.22% 2014 5,814,571 5,808,387 99.89%202,342 6,010,729 103.37% 2015 5,965,704 6,100,655 102.26%170,306 6,270,961 105.12% 2016 6,657,414 6,420,215 96.44%194,668 6,614,883 99.36% 2017 6,764,963 6,592,548 97.45%137,921 6,730,469 99.49% 2018 6,868,411 6,717,291 97.80%116,182 6,833,473 99.49% Total Collections to Date Collections within the Fiscal Year of Levy Notes: (1)Taxes Levied. The total tax levy is based on the Statement of Original Charge from the Riverside County Auditor- Controller Office. The amounts presented include City property taxes for tax districts 02-2374 and 02-2375 and are not inclusive of the redevelopment increment values. (2)Collections in Subsequent Years. The City participates in the Riverside County Teeter program; the secured taxes are remitted in a series of advances and settlement payments, the last of which is not received by the City until October of the subsequent year. Additionally, the City receives remittances for prior year throughout the subsequent year. As these values are not known at the time of publishing, the number in this column will be adjusted on the 18-19 CAFR to reflect all prior year collections received. (3)Collections to Date. The total amount does not include any apportionment adjustments that are the result of successful appeals of a taxpayer assessed valuation, escaped bills, refunds, or any other adjustments made by the County Auditor-Controller. As such, the percentage of the levy collected may be higher or lower than expected. Additionally, the increment values of the former Redevelopment Agency are allocated through a waterfall distribution process in accordance with California Health and Safety Code 34183 and 34188, and are not reflected on the Statement of Original Charge. Source:County of Riverside Auditor Controller's Office $0 $10 $20 $30 $40 $50 $60 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Property Tax Collections (in millions) 149 CITY OF LA QUINTA Ratios of Outstanding Debt by Type (1) Last Ten Fiscal Years (in dollars) 2009 2010 2011 2012 2013 178,311$ 128,311$ -$ -$ -$ 149,169 114,583 78,253 40,090 71,045 751,754 741,171 729,480 - 702,105 1,556,283 1,530,958 1,503,433 - 1,441,096 Notes Payable- Eisenhower Drive Property - - - - - 2,874,653 2,072,965 1,255,243 - - 1,400,000 1,200,000 1,000,000 - - 343,814 174,584 - - - 133,390,000 130,255,000 126,925,000 - - 5,800,000 5,680,000 11,555,000 - - 84,560,000 82,890,000 81,150,000 - - - - 28,850,000 - - 5,160,000 4,760,000 4,340,000 3,895,000 3,425,000 (804,944) (768,801) (1,115,799) - - Total Governmental 235,359,040 228,778,771 256,270,610 3,935,090 5,639,246 Capital Leases 285,217 54,543 286,097 169,084 43,736 Total Business-Type Activities 285,217 54,543 286,097 169,084 43,736 Total Primary Government 235,644,257 228,833,314 256,556,707 4,104,174 5,682,982 Population - State Department of Finance January 1 43,778 44,421 37,836 38,075 38,401 Number of Households 21,355 23,489 23,489 23,528 23,612 Median Household Income 92,156 90,124 104,410 104,045 111,077 Percentage of Personal Income 11.97%10.81%10.46%0.17%0.22% Debt Per Capita 5,383 5,151 6,781 108 148 Fiscal Year Ended Governmental Activities: Due to Coachella Valley Unified School District Capital leases City Hall Lease Revenue Bonds Unamortized Discount and Issuance Costs Reimbursement Agreement Business-type Activities: Due to County of Riverside Developer Agreement Tax Allocation Bonds Project Area 1 Tax Allocation Bonds Project Area 2 2004 Local Agency Revenue Bonds (2) 2011 Local Agency Revenue Bonds (2) USDA Loan Provident Savings Loan Notes: (1)Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2)The debt service payment for the 2004 and 2011 Lease Revenue Bonds are made from Redevelopment Project Area 1 & 2 low & moderate income tax increment. Source:City of La Quinta; HDL, Coren & Cone 150 TABLE 14 2014 2015 2016 2017 2018 -$ -$ -$ -$ -$ 129,063 103,869 155,395 530,163 667,035 686,345 668,933 649,698 628,448 - 1,405,755 1,367,344 1,325,596 1,280,221 - - - - 2,250,000 1,125,000 Notes Payable- Eisenhower Drive Property - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,930,000 2,405,000 1,850,000 1,265,000 650,000 - - - - - 5,151,163 4,545,146 3,980,689 5,953,832 2,442,035 Total Governmental - - - - - Capital Leases - - - - - Total Business-Type Activities 5,151,163 4,545,146 3,980,689 5,953,832 2,442,035 Total Primary Government 39,032 39,694 39,977 40,677 41,204 Population - State Department of Finance January 1 23,871 24,150 24,432 24,544 24,643 Number of Households 109,365 97,526 99,157 104,749 107,447 Median Household Income 0.20%0.19%0.16%0.23%0.09% Percentage of Personal Income 132 115 100 146 59 Debt Per Capita 2011 Local Agency Revenue Bonds (2) City Hall Lease Revenue Bonds Governmental Activities: Unamortized Discount and Issuance Costs Business-type Activities: Due to Coachella Valley Unified School District Due to County of Riverside Developer Agreement Tax Allocation Bonds Project Area 1 Tax Allocation Bonds Project Area 2 2004 Local Agency Revenue Bonds (2) Reimbursement Agreement Capital leases USDA Loan Provident Savings Loan ‐ 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 5,383 5,151 6,781 108 148 132 115 100 146 59 Debt Per Capita 151 CITY OF LA QUINTA TABLE 15 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (in dollars) Fiscal Year Ended June 30, City Hall Lease Obligation Local Agency Bonds Tax Allocation Bonds Total Percent of Assessed Value (2) Per Median Household Income 2009 5,160,000 84,560,000 139,190,000 228,910,000 1.84% 2,484 2010 4,760,000 82,890,000 135,935,000 223,585,000 1.90% 2,481 2011 4,340,000 110,000,000 138,480,000 252,820,000 2.33% 2,421 2012 3,895,000 - - 3,895,000 0.04% 37 2013 3,425,000 - 2,250,000 5,675,000 0.03% 31 2014 2,930,000 - - 2,930,000 0.03% 27 2015 2,405,000 - - 2,405,000 0.02% 20 2016 1,850,000 - - 1,850,000 0.02% 45 2017 1,265,000 - - 1,265,000 0.01% 31 2018 650,000 - - 650,000 0.01% 6 Outstanding General Bonded Debt (1) Notes: (1)General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none) (2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Source:City of La Quinta 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1.84% 1.90% 2.33% 0.04%0.03%0.03%0.02%0.02%0.01%0.01% General Bonded Debt as a Percent of Assessed Value 152 CITY OF LA QUINTA TABLE 16 Direct and Overlapping Debt June 30, 2017 (in dollars) Total Assessed Valuation (1)12,917,219,997$ Overlapping Debt (3) 16.68%314,935,000$ 52,524,859$ 52.04%254,988,839 132,685,992 20.21%294,895,000 59,604,177 88.91%1,030,000 915,794 88.21%1,505,000 1,327,547 247,058,369 4.90%812,829,106 39,820,498 4.90%266,365,000 13,049,221 52.04%39,035,000 20,312,253 20.21%43,550,000 8,802,326 26.60%778,538 207,091 Total Overlapping General Fund Debt 82,191,389 Overlapping Tax Increment Debt Successor Agencies 13.894- 100.00 %473,643,028 295,959,390 Total Overlapping Tax Increment Debt Total Gross Overlapping Debt 625,209,148 Less: Riverside County Supported Obligations 164,278 Total Net Overlapping Debt 625,044,870 2,442,035$2,442,035 2,442,035 627,486,905$ DSUSD Community Facilities District No. 1 Total Net Combined Direct and Overlapping Debt Coachella Valley Water District Assessment District No. 68 City of La Quinta General Fund Obligations Desert Sands Unified School District COP Desert Recreation and Park District COP Estimated Share of Overlapping Debt Outstanding Debt 6/30/18 Percentage Applicable (2) Overlapping Tax and Assessment Debt Desert Community College District Coachella Valley Unified School District Desert Sands Unified School District (DSUSD) Total Overlapping Tax and Assessment Debt Overlapping General Fund Debt Riverside County General Fund Obligations Riverside County Pension Obligations Coachella Valley Unified School District Certificates of Participation (COP) Direct General Fund Debt Total Direct General Fund Debt Notes: (1) Total assessed valuation is from the Equalized Assessor report which includes homeowner exemptions. (2)For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the overlapping district's taxable assessed value that is within the city's boundaries divided by the district's total taxable assessed value. (3)Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. 153 CITY OF LA QUINTA Legal Debt Margin Information Last Ten Fiscal Years (in dollars) 2009 2010 2011 2012 2013 Assessed valuation (1)12,416,034,763$ 11,753,185,892$ 10,870,790,733$ 10,331,431,958$ 10,274,998,112$ Debt limit percentage (2)15%15%15%15%15% Debt limit 1,862,405,214 1,762,977,884 1,630,618,610 1,549,714,794 1,541,249,717 - - - - - Legal debt margin 1,862,405,214$ 1,762,977,884$ 1,630,618,610$ 1,549,714,794$ 1,541,249,717$ 0.0%0.0%0.0%0.0%0.0% Total debt applicable to the limit as a percentage of debt limit General obligation bonds (3) Total net debt applicable to lim Fiscal Year Notes: (1) Assessed Valuation is from the Equalized Auditor's Net report which excludes the homeowner exemptions (2)Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City. (3)The City of La Quinta has no general bonded indebtedness. Source:Riverside County Auditor Controller 154 TABLE 17 2014 2015 2016 2017 2018 10,726,752,603$ 11,369,346,292$ 11,930,906,878$ 12,457,435,999$ 12,867,519,997$ Assessed valuation (1) 15%15%15%15%15%Debt limit percentage (2) 1,609,012,890 1,705,401,944 1,789,636,032 1,868,615,400 1,930,128,000 Debt limit Total net debt applicable to lim - - - - - General obligation bonds (3) 1,609,012,890$ 1,705,401,944$ 1,789,636,032$ 1,868,615,400$ 1,930,128,000$ Legal debt margin 0.0% 0.0% 0.0% 0.0% 0.0% Total debt applicable to the limit as a percentage of debt limit 155 CITY OF LA QUINTA TABLE 18 Pledged-Revenue Coverage (1) Last Ten Fiscal Years (in dollars) Principal Interest 2009 676,450 - 676,450 380,000 296,450 1.00 2010 675,280 - 675,280 400,000 275,280 1.00 2011 672,525 - 672,525 420,000 252,525 1.00 2012 673,521 - 673,521 445,000 228,521 1.00 2013 673,130 - 673,130 470,000 203,130 1.00 2014 671,351 - 671,351 495,000 176,351 1.00 2015 673,046 - 673,046 525,000 148,046 1.00 2016 673,075 - 673,075 555,000 118,076 1.00 2017 671,441 - 671,441 585,000 86,441 1.00 2018 668,141 - 668,141 615,000 53,141 1.00 . Coverage Ratio (3) Local Agency Revenue Bonds (City Hall Project) Lease Revenue (2) Debt ServiceLess Other Debt Payments Net Lease Revenue Fiscal Year Ended June 30, Notes: (1)Details regarding the city's outstanding debt can be found in the notes to the financial statements. (2)Lease revenues consist of payments from the City General Fund and Civic Center Development Impact Fee Fund. (3)Coverage ratio is a measure of the City's ability to meet its obligation. A ratio of greater than or equal to one indicates that sufficient revenue has been generated to satisfy the debt service requirements. The ratio is calculated as total available revenue (net lease revenue) divided by total debt service requirements (principal and interest) . 156 CITY OF LA QUINTA TABLE 19 Demographic and Economic Statistics Last Ten Calendar Years Sources 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (3)35.31 35.31 35.31 35.16 35.16 35.16 35.71 35.71 35.71 35.71 (1)43,778 44,421 37,836 38,075 38,401 39,032 39,311 39,977 40,677 41,204 (5)$92,156 $90,124 $104,410 $104,045 $111,077 $109,365 $97,526 $99,157 $104,749 $107,447 (1)21,355 23,489 23,528 23,528 23,612 23,871 24,150 24,432 24,544 24,643 (1) 2.85 2.87 2.55 2.56 2.58 2.59 2.60 2.62 2.64 2.63 (4) $32,324 $31,457 $40,961 $40,722 $43,053 $42,226 $37,510 $37,486 $39,288 $39,999 (2) 14,800 14,600 14,400 15,100 15,300 15,600 17,300 17,800 18,100 19,000 (2) 13,700 13,500 13,300 14,100 14,400 14,900 16,600 17,200 17,500 18,000 (2) 7.43% 7.53% 7.64% 6.62% 5.88% 4.30% 4.50% 3.37% 3.31% 5.26% (4) 36.4 42.2 41.5 42.8 43.6 44.8 45.1 45.3 45.7 46Median age(4) Calendar Year Mean Household Income (in dollars)(5) Number of Dwelling Units(1) Persons per Household(1) Labor Force(2) Per Capita Income(4) Employment(2) City Land (Sq Miles) Population(1)(4) Unemployment Rate Sources: (1) State of California Department of Finance; State of California, Department of Finance, E-1 and E-5 Population and Housing Estimates for Cities, Counties and the State — January 1, 2017- 2018. Sacramento, California, released May 2018. (2) State of California Employment Development Department Website (3) Design and Development Department (4) HDL, Coren & Cone (5) Previously, calculated using "Persons per Household" mulitplied by "Per Capita Income". Starting in 2017, data is from the US Census Bureau American Fact Finder 21,355 23,489 23,528 23,528 23,612 23,871 24,150 24,432 24,544 24,643 17,000 19,500 22,000 24,500 27,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of Dwelling Units 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unemployment Rate $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mean Household Income 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Per Capita Income and Unemployment Per Capita Income Unemployment Rate 157 CITY OF LA QUINTA TABLE 20 Principal Employers Current Year and Ten Years Ago Activity Number of Employees Percent of Total Employment Rank Number of Employees Percent of Total Employment Government 1 2,850 15.00%1 2,415 17.63% Hotel & Golf Resort 2 1,437 7.56%2 1,210 8.83% Retailer 3 379 1.99%3 463 3.38% Retailer 4 222 1.17%5 190 1.39% Retailer 5 210 1.11%7 157 1.15% Retailer 6 150 0.79%9 125 0.91% Retailer 7 140 0.74%8 140 1.02% Utility Company 8 138 0.73%6 164 1.20% Golf Resort 9 140 0.74%4 200 1.46% Golf Resort 10 130 0.68%- -0.00% Vons Grocery Store 11 101 0.53%- -0.00% Fast Food Restaurant 12 81 0.43%10 120 0.88% Total employment listed 5,978 31.46%5,184 37.84% Total City Employment - July 1 19,000 13,700 Desert Sands Unified School District Wal-Mart Super Center La Quinta Resort & Club/ PGA West (1) Fiscal Year 2008-09 Employer Fiscal Year 2017-18 In N Out Home Depot Costco Lowe's Home Improvement Target Rancho La Quinta Traditions Golf Club Imperial Irrigation District Notes: (1) La Quinta Resort & Club and PGA West are accounted for as one entity; as such, their employment numbers are reported together as of FY 2015-16. Source: City of La Quinta, and infogroup.com 158 CITY OF LA QUINTA TABLE 21 Full-time City Employees by Function Last Ten Fiscal Years 2009 2010 2011 2012 2013 2014 (1) 2015 2016 (2) 2017 2018 12.00 13.00 14.00 12.00 11.00 8.00 7.00 4.00 4.00 5.00 6.00 6.00 6.00 5.00 5.00 4.00 4.00 3.00 3.00 5.00 9.00 9.00 9.00 8.00 8.00 7.00 8.00 7.00 7.00 8.00 11.75 10.75 10.75 10.75 10.75 12.00 11.65 - - - 25.00 25.00 24.00 21.00 21.00 - - - - - 12.00 10.00 9.00 8.00 9.00 - - - - - - - - - - 19.00 20.00 - - - 29.25 27.25 26.25 24.25 23.25 20.00 21.35 - - - - - - - - - - 18.00 18.00 18.00 - - - - - - - 27.00 27.00 29.00 - - - - - - - 19.00 19.00 19.00 Total 105.00 101.00 99.00 89.00 88.00 70.00 72.00 78.00 78.00 84.00 Fiscal Year Facilities (5) Finance Community Services Design and Development (4) Community Resources (3) Planning and Development Community Development Public Works Administration-City Mgr. Office City Clerk Function Building and Safety Notes: The City of La Quinta contracts with the County of Riverside for Police Services and with the California Department of Forestry through a contract with the County of Riverside for Fire Services. In addition the City-owned Golf Course is operated by Landmark Golf. These positions have not been included as these positions are not City employees. (1) The City merged the Building and Safety Department with the Planning and Development Department in 2014. The resultant department was referred to as Community Development until 2016, see below. (2) During FY 2015-'16 the City was subject to a major reorganization in an attempt to improve efficiency and controls that effectively terminated the Community Services, Community Development, and Public Works departments. Following is a brief description of the reorganization for each department : (3)The Community Resources department has taken over specific roles of the prior Community Development and Community Services departments including, but not limited to human resources, police, fire,library, museum, recreation, marketing, code compliance, animal control, and emergency services. (4)The Design and Development department has taken over specific roles of the prior Community Development, Public Works, and Finance departments including, but not limited to customer service, business and animal licensing, planning, building, engineering services, and development services. (5)The Facilities department has taken over specific roles of the prior Community Services and Public Works departments including,but not limited to , parks, streets, buildings, lighting and landscaping. Source:City of La Quinta ‐ 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 110.00 2009 2010 2011 2012 2013 2014 (1) 2015 2016 (2) 2017 2018 105.00 101.00 99.00 89.00 88.00 70.00 72.00 78.00 78.00 84.00 Total Full‐Time City Employees 159 CITY OF LA QUINTA TABLE 22 Operating Indicators by Function Last Ten Fiscal Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Finance: Number of Animal Licenses Processed (1)1,609 1,768 1,619 1,674 1,505 1,602 1,374 - - Number of Accounts Payable Checks Processe 4,819 4,393 4,530 3,766 3,576 3,696 3,833 4,153 3,835 3,621 Number of investment purchases 36 32 20 27 30 22 21 22 20 61 Par value of investments 229,969,000$ 267,213,000$ 189,810,285$ 188,782,874$ 164,614,769$ 136,323,300$ 128,990,447$ 137,594,669$ 139,613,063$ 150,117,079$ Number of cleared checks 5,269 4,984 4,912 5,103 3,899 3,922 4,004 4,167 3,932 3,813 Number of outgoing bank wires 91 75 87 63 58 58 54 41 44 64 City Clerk: Contracts Processed - - - 319 346 289 238 282 199 243 Documents Notarized - - - 254 301 334 203 157 99 128 Documents Recorded with County - - - 170 125 183 106 112 56 67 Subpoenas and Claims Processed - - - 22 15 21 37 10 8 12 Records Requests Fulfilled and Recorded - - - 518 558 601 580 518 743 572 Documents Scanned to Electronic Archives (1)- - - 30,437 28,798 34,671 164,847 233,182 214,384 593,991 Public Works: Encroachment permits issued 132 78 104 65 124 109 127 54 123 121 Request for services (1)1931 1306 746 534 740 1,322 1,261 3,440 3,207 2,652 Community Development: Number of Active Business Licenses (1)3,523 3,428 3,183 3,310 3,520 3,998 4,452 3,368 3,681 3,707 Permits: Single family Detached 129 56 85 39 83 147 176 108 92 142 Single family Attached 6 12 - 11 - - 4776 Residential Pool 207 152 148 127 162 204 255 217 170 211 Wall/Fence 299 178 218 149 167 220 328 257 209 268 Other 908 790 1,033 916 1,042 1,158 1,316 1,230 1,258 1,571 Garage Sale Permits (1)1,535 1,663 1,805 1,430 1,404 1,255 1,290 1,109 1,024 928 Total Permits 3,084 2,851 3,289 2,672 2,858 2,984 3,369 2,928 2,760 3,126 Code Compliance (1): Animal Control Incidents Handled (1)3,630 3,984 4,392 4,246 3,206 1,645 1,085 - - - Vehicle abatements 346 214 263 139 99 88 85 255 212 224 Weed abatements 97 125 143 106 1,404 43 45 57 114 128 Nuisance abatements/Property Maintenance 3,130 2,340 2,252 2,433 1,668 730 557 1,037 1,180 1,122 All Other (2)- - - - - - - 1,432 806 888 Community Services: Library activities: Volume 81,124 89,060 92,484 109,000 63,955 71,874 73,924 182,913 190,747 152,725 Books checked out 215,843 259,711 263,064 275,838 220,690 329,154 263,047 234,340 254,323 250,636 Cards Issued 3,684 3,547 3,822 4,477 2,966 2,035 2,418 2,179 2,248 2,276 Number of School Children Visiting 1,036 772 1,881 962 737 1,539 1,562 2,947 4,680 4,528 Volunteer Hours 2,342 2,723 4,280 2,720 2,226 1,340 1,917 2,169 2,248 2,314 Senior Center/Wellness Center (1) : Number of visits 15,739 20,326 18,403 16,642 9,350 11,500 23,871 62,820 74,141 87,294 Volunteer Hours 2,583 3,131 3,099 2,690 2,233 2,745 1,279 1,585 1,420 1,333 Recreation activities: Participants: Leisure Classes 1,140 1,437 1,512 2,016 1,475 1,177 1,322 2,241 2,278 2,168 Special events 11,053 8,795 8,933 36,305 5,970 5,927 6,460 8,185 7,783 10,449 Adult Sports 10,806 13,364 13,092 5,647 3,865 5,878 5,487 7,192 6,695 6,136 Golf course: Golf rounds played 40,941 43,779 45,269 46,949 46,352 43,610 41,904 45,104 43,085 42,590 Average Green fee 72.41$ 71.59$ 70.70$ 70.40$ 67.44$ 66.83$ 69.65$ 66.87$ 66.80$ 71.88$ Planning and Development: Number of residential units approved 100 255 208 285 228 494 208 40 120 0 Commercial square footage approved 390,097 6,200 27,526 61,662 - 113,149 79,092 13,000 391,914 7,599 Fiscal Year Notes:(1) Data on this table may vary from year to year due to restructuring, personnel, and systems changes that have taken place at the city over the past five years. Examples include animal licensing and control contracted to County of Riverside May 2015, business licenses and garage sale permits transferred to Community Development Department, tracking system for active business licenses updated, vacation rental requirements for permits changed, Codes Department began using GoEnforce tracking software, Public Works Department expanded use of GoRequest system, City Clerk's office began project to archive all old documents and plans electronically, and the Senior Center became the Wellness Center in 2015. (2)"All Other" category includes building codes, business license, commercial, hazardous conditions, health/safety, other, parking, vacation rentals, and zoning. For 2016, data was annualized using the seven months of actual "total closed incidents" provided by GoEnforce. Source:City of La Quinta 160 CITY OF LA QUINTA TABLE 23 Capital Asset Statistics by Function Last Ten Fiscal Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Public Works: 127 127 127 128 128 128 128 128 128 128 22 22 22 22 22 22 34 34 35.5 35.5 261 265 265 269 269 277 277 281 372 372 49 50 50 51 52 54 54 54 54 54 2,899 2,909 2,919 2,934 2,984 3,018 3,018 3,018 5,758 5,758 12 12 12 12 12 13 13 13 13 13 Parks and Recreation: Parks 13 13 13 13 13 13 13 13 13 13 209 218 218 218 218 218 218 218 218 218 40 40 40 40 40 40 40 40 40 40 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Public Safety: Fire Stations 3 3 3 3 3 3 3 3 3 3 Golf Course: 1 1 1 1 1 1 1 1 1 1 Municipal golf courses Undeveloped Park Acreag Park Acreage Traffic signals Traffic signs Bridges Streetlights (2) Fiscal Year Bikepaths (miles) (1) Streets (miles) Senior/Wellness Center Museum Library Notes: (1) Bike path miles were updated to include both Class I and Class II bicycle paths in 2015. (2)In fiscal year ending 2009 street lights at intersections were included for the first time. Additionally, the decorative streetlights in Old Town were added for the first time in 2017. Source:City of La Quinta 161 CITY OF LA QUINTA TABLE 24 Schedule of Insurance in Force 30-Jun-18 Company Name Policy Number Coverage Limits Term Premium Hartford 72FA0267254-17 Employee Dishonesty,$1 Million 12/03/17 - 12/03/18 $3,366 Forgery, Computer Fraud Hartford 72FA0267254-16 Employee Dishonesty,$1 Million 12/03/16 - 12/03/17 $3,366 Forgery, Computer Fraud CJPIA-Alliant B128410009W18 All Risk Property Insurance $25 Million 07/01/18 - 07/01/19 $84,997 Including Auto Physical Damage, Single Limit per Occurrence Terrorism, Boiler & Machinery subject to other sublimits (Excluding Earthquake) CJPIA-Alliant B128410009W17 All Risk Property Insurance $25 Million 07/01/17 - 07/01/18 $86,073 Including Auto Physical Damage, Single Limit per Occurrence Terrorism, Boiler & Machinery subject to other sublimits (Excluding Earthquake) Lloyds W14D19170401 Earthquake $10 Million 02/07/18 to 02/07/19 $98,700 Real & Personal Property Including Contingent Tax Interruption Lloyds W14D19170401 Earthquake/Flood $10 Million 02/07/17 to 02/07/18 $80,496 Real & Personal Property Including Contingent Tax Interruption California Self-Insured Comprehensive General $50 Million 07/01/18 - 07/01/19 $431,167 Joint Powers Pool Liability Single Limit per Occurrence Insurance Authority California Self-Insured Comprehensive General $50 Million 07/01/17 - 07/01/18 $448,537 Joint Powers Pool Liability Single Limit per Occurrence Insurance Authority California Self-Insured Worker's Compensation $10 Million 07/01/18 - 07/01/19 $123,562 Joint Powers Pool Insurance Authority California Self-Insured Worker's Compensation $10 Million 06/30/17 - 06/30/18 $220,848 Joint Powers Pool Insurance Authority Source:City of La Quinta 162 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE THE MEASURE G COMPLIANCE REPORT FOR FISCAL YEAR 2017/18 RECOMMENDATION Receive and file the annual Measure G Compliance Report for the 2017/18 fiscal year. EXECUTIVE SUMMARY • Financial Advisory Commission (FAC) provides oversight of Measure G sales tax funds. • The FAC prepares an annual revenue and expenditure report to account for funds and ensure adherence to the ballot measure priorities. • The Report was presented to City Council on January 15, 2019. FISCAL IMPACT - None BACKGROUND/ANALYSIS Audited financial statements for fiscal year ending June 30, 2018 were presented to Council on January 15, 2018. In accordance with the Measure G ballot measure, the FAC provides oversight of Measure G funds. The attached Annual Measure G Sales Tax Oversight Report for Period Ending June 30, 2018 (Attachment 1) provides an update of the revenue and expenses through June 30, 2018. This report was prepared by the Finance Department in conjunction with two FAC members (Commissioners Rosen and Twohey). A brief update for the 2018/19 fiscal year is also provided. This report was presented and approved by the City Council on January 15, 2019. ALTERNATIVES The Commission may request additional information. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachment: 1. Annual Measure G Sales Tax Oversight Report for Period Ended June 30, 2018 BUSINESS SESSION ITEM NO. 2 BACKGROUND Voters passed Ballot Measure G in November 2016. Measure G provides a one percent transaction and use tax, effective April 1, 2017, which is fully allocated to the City of La Quinta. These tax revenues will be invested to maintain services and programs and for needed infrastructure improvements. The Financial Advisory Commission (FAC) provides oversight of these tax revenues. The second Annual Measure G Sales Tax Oversight Report covers the period July 1, 2017 thru June 30, 2018 (fiscal year 2017/18) and provides estimates for fiscal year ending June 30, 2019. This report concludes that all Measure G tax revenues are being used in accordance with the ballot measure requirements. REVENUES Total Measure G sales tax revenues for 2017/18 were $9,967,657. This compares to the final budget estimate of $9.6 million. Actual revenues exceeded budget estimate due to: - Higher levels goods purchased in neighboring cities for delivery within the City of La Quinta and - Conservative, yet adjusted, revenue projections due to the lack of history. The Measure G revenue budget for 2018/19 is $8,455,000; however, a mid-year adjustment will be presented for Council consideration to increase this budget by $890,000 for a total revenue of $9,345,000. An additional adjustment may follow during the third quarter budgetary analysis. This is the second year of Measure G revenue and a reputable trend does not exist, therefore, a conservative and closely monitored approach is employed. EXPENDITURES Originally the 2017/18 budget allocated $100,000 of Measure G for public safety contract services; however, due to budgetary savings, these funds remained unallocated and are recognized in reserves. A $300,000 contribution to a new restricted Public Safety Fund was made and in 2018/19 and an additional $200,000 will be added. ANNUAL MEASURE G SALES TAX OVERSIGHT REPORT FOR PERIOD ENDED JUNE 30, 2018 $17,019,000 $2,750,000 2018/19 Police Contract Services funded with Measure G Sales Taxes Police Contract Costs Measure G Revenue The 2018/19 operating budget allocates $2.7 million for police contract services. This represents 16% of total anticipated contract service costs. Below is an updated Measure G Revenue and Expenditure Summary by fiscal year with prior year actuals and estimates for 2018/19. The total revenue of $20.7 million is allocated as follows by category. The greatest portion (51% or $10.5 million) is allocated to Capital Improvement Projects as detailed above. Operational expenses (16% or $3.2 million) have been limited to police contract services. Use of reserve funds are subject to City Council appropriation. All Measure G revenues shall be used in accordance with the ballot measure for costs including police protection, projects such as parks, landscaping and flood control, programs attracting businesses, and youth/senior services, and sports recreation programs. Revenues 2016/17 Actual 1,462,650$ 2017/18 Actual 9,967,657 2018/19 Estimated Budget (Adjusted)*9,345,000 TOTAL 20,775,307$ Expenditures Operational Capital Reserves 2016/17 Eisenhower Dr. Retention Basin 750,000 Measure G Reserves 2016/17 712,650 2017/18 Public Safety Fund 300,000 North La Quinta Landscape Improvements 1,802,576 Citywide Drainage Enhancements 2,407,373 La Quinta Village Road Diet Project 1,000,388 Measure G Reserves 2017/18 4,457,320 2018/19 Public Safety Fund 200,000 Public Safety Services 2,750,000 Citywide Drainage Enhancements 1,166,500 North La Quinta Landscape Improvements 2,129,613 SilverRock Event Space (Proposed)**1,300,000 Measure G Reserves 2018/19 (Adjusted)***1,798,887 TOTAL 3,250,000$ 10,556,450$ 6,968,857$ MEASURE G REVENUES AND EXPENDITURES SUMMARY * Includes an anticipated 2018/19 mid-year budget adjustment to increase revenues. ** Proposed SilverRock Event Space allocation will be presented for Council consideration on 1/15/19. *** Reserves are adjusted for the anticipated revenue increase and use of funds for SilverRock Event Space. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2018/19 MID-YEAR BUDGET REPORT RECOMMENDATION Receive and file fiscal year 2018/19 Mid-Year Budget Report. EXECUTIVE SUMMARY • The 2018/19 Mid-Year Budget Report (Attachment 1) provides an update of the City’s fiscal activities from July to December 2018. • The Mid-Year Budget Report included revenue and expenditure adjustments, reclassifying the Marketing Coordinator position and adding three new positions. • Staff recommended, and City Council approved allocating $10,000,000 of General Fund Unassigned Fund Balance to Committed Reserves. FISCAL IMPACT The following adjustments were approved by City Council: BUSINESS SESSION ITEM NO. 3 Fund Revenues Expenses General Fund (101)1,997,000$ 147,213$ Library and Museum Fund (202)- 165,200 Public Safety Fund (Fund 203)3,000 - JAG Fund (Fund 213)213 Development Agreement Fund (Fund 217)800 Quimby Fund (Fund 220)16,000 Cal Recycle Fund (Fund 221)2,500 60,000 2018/19 Mid-Year Adjustment Requests Continued - BACKGROUND/ANALYSIS Throughout the fiscal year each Department monitors their budget and proposes adjustments to reflect current conditions and ongoing operational needs. Requests are reviewed and discussed by the City Manager and Directors before recommendations are presented in the Budget Report (Attachment 1). Funds with no adjustments have been excluded. The Budget Report was presented to City Council on February 5, 2019. The Council approved the recommended budget adjustments, a marketing position reclassification, new Permit Technician, Plans Examiner, and Management Specialist positions. In addition, the Council recommended that $10,000,000 be allocated from Unassigned Fund Balance to reserves as follows: • Natural Disaster Reserve $2,600,000 • Economic Disaster Reserve $2,860,000 • Capital Replacement Reserve $0 • Pension Trust Benefits $4,540,000 ALTERNTIVES No alternatives are recommended, the City Council approved the report and recommended adjustments on February 5, 2019. Prepared by: Karla Campos, Finance Director Attachment: 1. 2018/19 Mid-Year Budget Report Fund Revenues Expenses Measure A Fund (Fund 223)3,000 - CASp Fund, AB 1379 (Fund 230)6,000 - Transportation DIF Fund (Fund 250)10,000 - Parks & Recreation DIF Fund (Fund 251)4,000 - Facility & Fleet Fund (Fund 501)15,000 - Information Technology Fund (Fund 502)12,000 - Parks Equipment Fund (Fund 503)15,000 70,000 SilverRock Operating Fund (Fund 601)55,000 55,000 SilverRock Reserve Fund ( Fund 602)- 55,000 CERBT OPEB Trust Fund (Fund 761)20,000 - TOTAL ADJUSTMENTS 2,159,513$ 552,413$ 2018/19 Mid-Year Adjustment Requests 2018/19 MID-YEAR BUDGET REPORT The 2018/19 Mid-Year Budget Report (Report) provides an update on the City’s fiscal activities from July to December 2018. A quarterly Report is prepared to assess the budget and incorporate adjustments based on current economic conditions and operational requirements. Detailed line item adjustments are found in Exhibits 1 and 2. Funds with no adjustments have been excluded. REVENUES Most General Fund revenues are projected to end the year within budget. Based on updated analysis, staff recommends a revenue increase of $422,000 for property taxes. The increase is a combined result of a reduction in the number of parcels with lower valuations due to Proposition 8 appeals and an increase in overall property valuation. The California Department of Tax and Fee Administration (CDTFA) continues to resolve sales tax software reporting issues, misallocation of revenues, and delayed revenue remittances. The clean-up efforts will take several months. During mid-year, staff is recommending a conservative increase of $890,000 to Measure G sales tax revenue. As noted in the annual Measure G Compliance Report (presented on January 15, 2019) a future adjustment may be recommended during the third quarter. Additional Measure G revenue shall remain in reserves until appropriated by Council. Miscellaneous reimbursements have been received for insurance claims and maintenance agreements with neighboring agencies. A budget adjustment of $60,000 reflects additional funds received to date. Fire station #70, located at the corner of Madison and Avenue 54, requires painting, and bathroom and kitchen upgrades which are anticipated to cost $75,000. Expenses will be reimbursed from the county fire service credit account; therefore, a matching revenue adjustment is proposed. Transient occupancy tax adjustments (hotels $150,000 and short-term vacation rentals $400,000) increases those budgets to align with prior year actuals. GENERAL FUND A summary of General Fund revenue adjustments is provided below. Category Adjustment Property Taxes 422,000 Sales Taxes 890,000 Miscellaneous 60,000 Fire Services 75,000 Hotel Taxes 550,000 Total 1,997,000$ OVERVIEW EXPENDITURES The City is soliciting a new short-term vacation rental (STVR) compliance vendor to ensure short-term rentals operate within the ordinance rules and permits are obtained, transient occupancy taxes are remitted, and business licenses are paid. With a new compliance vendor and the STVR program continuing to grow, additional staff resources are necessary. The program currently operates with 1 1/2 full-time staff. Staff is requesting an additional Permit Technician position at an annual cost of $85,500 (salary and benefits); this position would improve payment and permit processing and ensure the compliance vendor has adequate internal resources to confirm non-compliant properties. The expenditure for the fourth quarter of 2018/19 would be $21,400 (salary and benefits) and is available in the contingency for staffing account (staff is requesting the Council approve a budget adjustment and this position). Staff is requesting a new Plans Examiner position in the Building division to work with applicants over the phone and in person. Staff inquired with the three on-call building plan review firms regarding assigning a contract plans examiner to City Hall for over-the-counter assistance. The hourly cost for a contract plans examiner would significantly exceed the hourly cost to hire an examiner ($120.00 versus $47.00 per hour) and the position cost would be offset by reducing consulting services. Annual costs for the position would be $96,400. Staff is requesting the Council approve a budget adjustment upon successful recruitment and this position. A Marketing division operational assessment was conducted to evaluate the benefits of reducing future contract services (starting in 2019/20) and bringing this work in-house; along with the proposal to expand marketing and community outreach services. To accomplish this, staff is requesting that the Marketing Coordinator be reclassified to a Marketing Manager (based on current and future job responsibilities) and adding a Management Specialist position. These requests would result in a combined annual increase of $120,400 (salary and benefits) which would be funded by reducing future contract expenses. Expenditures for the remainder of 2018/19 would be $34,100 (salary and benefits) and is available in the contingency for staffing account. Staff is requesting the Council approve a budget adjustment, the reclassification and the Management Specialist position. A summary of requested positions and reclassification is outlined below: Full-Time Position Department FY 18/19 Annual Ongoing Funding Source Permit Technician (New)The Hub 21,400$ 85,500$ General Fund Plans Examiner (New)Buildings 24,100 96,400 Reduced Contract Services Management Specialist (New)Marketing 24,000 96,400 Reduced Contract Services Marketing Manager Marketing 10,000 24,000 Reduced Contract Services 79,500$ 302,300$ Costs A summary of General Fund expense adjustments is provided below. Department Adjustment Design & Development 21,400 City Manager's Office 34,100 Contingency for Staffing (55,500) Finance 10,213 City Clerk 7,000 Community Resources 130,000 Total 147,213$ Due to low crime rates, the City no longer qualifies for Justice Assistance Grant (JAG) funding; staff is requesting a transfer of $213 from the General Fund to cover prior year expenses and close out this fund. To ensure critical functions have operational redundancy the Finance Department is undergoing numerous cross training efforts and requires temporary part-time assistance. Staff is requesting $10,000 to provide additional resources for routine tasks and allow staff the time to learn highly regulated complex tasks. A comprehensive fee study update will commence in the spring of 2019. Additional funding of $7,000 would be utilized to evaluate vacant parcel and SilverRock Event Space rental fees. In addition to the aforementioned requested recruitments, the Council will initiate the City Manager recruitment in February 2019; $30,000 is requested to insure sufficient funds for these recruitments. An adjustment of $25,000 is requested to augment short-term vacation rental code compliance efforts before and during the upcoming festival season. Staff is adjusting interest earning allocations in several funds reflect updated projections based on cash in each fund and an increase of investment portfolio returns. The City maintains a shared investment pool and each fund is allocated a portion of the total portfolio quarterly interest earnings based on the average cash on hand during the quarter for each fund. Council previously approved Amendment No. 1 to the library agreement for the Makerspace operations at an annual cost of $165,190. Staff is adjusting the library services budget to reflect this cost. These services are paid from restricted property tax revenues allocated for Library and Museum operations. In collaboration with local schools, the City recently implemented a successful recycling station bin program. The current budget of $35,000 is nearly expended; an additional $60,000 would OTHER FUNDS Fund Revenues Expenses Library and Museum Fund (202)- 165,200 Public Safety Fund (Fund 203) 3,000 *- JAG Fund (Fund 213)213 Development Agreement Fund (Fund 217)800 * Quimby Fund (Fund 220)16,000 * Cal Recycle Fund (Fund 221)2,500 *60,000 Measure A Fund (Fund 223)3,000 *- CASp Fund, AB 1379 (Fund 230)6,000 - Transportation DIF Fund (Fund 250)10,000 *- Parks & Recreation DIF Fund (Fund 251)4,000 *- Facility & Fleet Fund (Fund 501)15,000 *- Information Technology Fund (Fund 502)12,000 - Parks Equipment Fund (Fund 503)15,000 *70,000 SilverRock Operating Fund (Fund 601)55,000 55,000 SilverRock Reserve Fund ( Fund 602)- 55,000 CERBT OPEB Trust Fund (Fund 761)20,000 *- TOTAL ADJUSTMENTS 162,513$ 405,200$ * Indicates revenue adjustment is limited to interest allocation. 2018/19 Mid-Year Adjustment Requests for Other Funds fully allocate the revenue projected for this fiscal year and allocate prior year savings ($30,000). The Cal Recycle Fund has a balance of $800,000 and is restricted for recycling programs. The increase would provide funding for additional local school participation (Ben Franklin, Truman Elementary and La Quinta Middle). A revenue increase of $6,000 for CASp (AB 1379) Fund is derived from a State mandated increase in business license ADA compliance fees from $1 to $4 per license. Based upon the revenue the City is receiving from the information technology surcharge, staff is requesting an increase of $10,000 in this revenue account; this increase reflects updated projections based on current year-to-date transactions. An increase of $70,000 is requested from the Parks Equipment Fund which would derive from the $3,000,000 fund balance. The increase would fund a shade structure and a perimeter fence at the newly installed national fitness court at La Quinta Park, which would protect and extend the useful life of equipment and deter vandalism. In addition, the current camera security system would be upgraded. SilverRock Golf Resort has two funds (operating and reserve funds). The reserve fund is replenished each year based on annual golf round revenues (2% of actual revenues). These funds are intended for capital expenses. A proposed adjustment would move funds from the SilverRock Reserve Fund to the SilverRock Operating Fund. The current reserve fund balance is $478,000. During the first six months of operations an irrigation pump was replaced, and several repairs were required at a cost of $55,000. General Fund reserve balances were discussed during the 2017/18 General Fund Fiscal Year-End Budget Report and Comprehensive Annual Financial Report (CAFR). The Reserve Policy requires an annual review of reserves and funding levels during the mid-year budget process once the annual CAFR is published and final fund balances are known. Reserve funding generally comes from excess revenues over expenditures and one-time revenues and may be allocated to each reserve category as directed by Council until the target level is reached. Once all targets are reached, funds will remain in unassigned fund balance. GENERAL FUND RESERVES The following is a summary of Committed Reserves as of June 30, 2018. Staff has prepared two options for City Council consideration. Each option allocates $10,000,000 from Unassigned Fund Balance to various Committed Reserves. Option 1 fully funds two reserves (Natural Disaster and Economic Disaster) as depicted below. Option 2 allocates the $10 million based on the deficit weighted average per reserve and would result in the following balances. Council may choose one of the two funding options presented, alter the amount allocated but use one of the two allocation methods, request additional alternatives, or not allocate additional funds to committed reserves. Reserve Category Option 1 Target Deficit Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 11,000,000 11,000,000 - Capital Replacement Reserve 7,500,000 10,000,000 2,500,000 Pension Trust Benefits 4,040,000 10,000,000 5,960,000 37,540,000 46,000,000 8,460,000 Reserve Category Option 2 Target Deficit Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 8,808,451 10,000,000 1,191,549 Economic Disaster 9,689,296 11,000,000 1,310,704 Capital Replacement Reserve 7,708,559 10,000,000 2,291,441 Pension Trust Benefits 6,333,694 10,000,000 3,666,306 37,540,000 46,000,000 8,460,000 Reserve Category Current Target Deficit Option 1 Option 2 Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 7,400,000 10,000,000 2,600,000 2,600,000 1,408,451 Economic Disaster 8,140,000 11,000,000 2,860,000 2,860,000 1,549,296 Capital Replacement Reserve 5,000,000 10,000,000 5,000,000 2,500,000 2,708,559 Pension Trust Benefits 2,000,000 10,000,000 8,000,000 2,040,000 4,333,694 27,540,000 46,000,000 18,460,000 10,000,000 10,000,000 Unassigned Fund Balance 19,199,506 (10,000,000) (10,000,000) Option One: Fully fund two additional categories and partially fund remaining two. Option Two: Distribute an allocation to each category on a weighted basis, with the largest unfunded category receiving the largest amount. Account No. Description Revenues Expenses Finance 101-0000-40311 No-Low Property Tax 100,000 101-0000-40315 RPTTF Property Tax Pass Through 322,000 101-0000-41326 Sales Tax - Measure G 890,000 101-0000-42305 Miscellaneous Reimbursements 60,000 101-0000-42500 Fire Service Credit 75,000 101-0000-41400 TOT - Hotels 150,000 101-0000-41401 TOT - Short-Term Vacation Rentals 400,000 Total Revenue Adjustments 1,997,000$ Design and Development 101-6006-50101 Permanent Full-Time (The Hub Department) 21,400 101-1007-50115 Contingency for Staffing (21,400) City Manager's Office 101-3007-50101 Permanent Full-Time (Marketing Department) 34,100 101-1007-50115 Contingency for Staffing (34,100) Finance 101-1007-99900 Transfers Out to JAG Fund 213 101-1006-60125 Temporary Part-Time Agency Services 10,000 City Clerk 101-1005-60103 Professional Services 7,000 Community Resources 101-2002-72110 Fire Station Building Improvements 75,000 101-1004-60129 Recruiting/Pre-Employment (Human Resources) 30,000 101-6004-60103 Professional Service (Code Compliance) TOTAL 1,997,000$ 147,213$ GENERAL FUND (Fund 101) City of La Quinta FY 2018/19 Recommended Mid-Year Budget Adjustments Exhibit 2 Account No. Description Revenues Expenses 202-3004-60105 Makerspace Operations 165,200 Account No. Description Revenues Expenses 203-0000-41900 Allocated Interest 3,000 Account No. Description Revenues Expenses 213-0000-49500 Transfers In 213 Account No. Description Revenues Expenses 217-0000-41900 Allocated Interest 800 Account No. Description Revenues Expenses 220-0000-41900 Allocated Interest 16,000 Account No. Description Revenues Expenses 221-0000-60127 Recycling Solutions 60,000 221-0000-41900 Allocated Interest 2,500 Account No. Description Revenues Expenses 223-0000-41900 Allocated Interest 3,000 Account No. Description Revenues Expenses 230-0000-42130 SB 1186 Revenue 6,000 Account No. Description Revenues Expenses 250-0000-42130 Allocated Interest 10,000 Account No. Description Revenues Expenses 251-0000-42130 Allocated Interest 4,000 Account No. Description Revenues Expenses 501-0000-42130 Allocated Interest 15,000 Account No. Description Revenues Expenses 502-0000-42130 Allocated Interest 2,000 502-0000-43611 Information Technology Surcharge 10,000 LIBRARY AND MUSEUM FUND (Fund 202) CAL RECYCLE FUND (Fund 221) INFORMATION TECHNOLOGY FUND (Fund 502) MEASURE A FUND (Fund 223) PUBLIC SAFETY FUND (Fund 203) JAG FUND (Fund 213) DEVELOPMENT AGREEMENT FUND (Fund 217) QUIMBY FUND (Fund 220) CASp FUND, AB 1379 (Fund 230) TRANSPORTATION DIF FUND (Fund 250) PARKS AND RECREATION DIF FUND (Fund 251) FACILITY AND FLEET FUND (Fund 501) City of La Quinta FY 2018/19 Recommended Mid-Year Budget Adjustments Exhibit 2 Account No. Description Revenues Expenses 503-0000-71060 Parks 60,000 503-0000-80100 Machinery & Equipment 10,000 503-0000-42130 Allocated Interest 15,000 Account No. Description Revenues Expenses 602-0000-99900 Transfers Out (from SRR Reserve Fund)55,000 601-0000-49500 Transfers In (to SRR Operating Fund)55,000 601-0000-60214 Pump Repairs 45,000 601-0000-60660 Repairs and Maintenance 10,000 Account No. Description Revenues Expenses 761-0000-42130 Allocated Interest 20,000 TOTAL ALL OTHER FUNDS 162,513 405,200 CERBT OPEB TRUST FUND (Fund 761) SILVERROCK FUNDS (Funds 601 and 602) PARKS EQUIPMENT FUND (Fund 503) City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: APPROVE STAFF RECOMMENDATION TO ESTABLISH A PUBLIC AGENCY RETIREMENT SERVICE TRUST RECOMMENDATION Approve staff recommendation to establish a Public Agency Retirement Service Trust. EXECUTIVE SUMMARY • City of La Quinta employee retirement pension benefits are administered through the California Public Employees’ Retirement System (CalPERS). • $6,540,000 is in General Fund reserves to fund this obligation. FISCAL IMPACT The PARS trust is established at no cost. Total combined administrative, trustee and investment management fees for PARS, US Bank and HighMark Capital Management start at 0.59% of assets, are tiered, and will become lower as assets in the program increase. $6,540,000 is set-aside in General Fund reserves for this obligation. BACKGROUND/ANALYSIS PENSION BENEFITS All qualified employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan administered by CalPERS. Benefits provisions are established by State statute and city resolution. CalPERS provides service retirement and disability benefits, annual cost of living adjustments as specified by Public Employees’ Retirement Law (PERL) and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service. The City administers three plan provisions as summarized below: BUSINESS SESSION ITEM NO. 4 Tier 1 Tier II PEPRA On and after On and after On and after Hire Date 12/16/1983 12/17/2012 1/1/2013 Benefit Formula 2.5% at 55 2% at 60 2% at 62 Employee Cotribution Rate 8.00%7.00%6.25% Employer Contribution Rate 10.11%7.20%6.533% Pension Liability 12,011,222$ 15,353$ 22,060$ As of June 30, 2018 PENSION OBLIGATION PERL requires contribution rates for all public employers be determined annually as of June 30th by the actuary. The actuarial-determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, and any unfunded accrued liability. Actuarial assumptions include discount rate (projected investment rate of return), inflation, projected salary increases, mortality, and cost of living increases. As of June 30, 2018, the City’s total pension liability was $12,048,635; measured as of June 30, 2017. Since June, the City has fully paid the Tier II and PEPRA tier liabilities; leaving an unfunded balance of $12,011,122 for the Classic Tier I. In May of 2018 the City adopted a new Reserve Policy and established a Pension Trust Reserve with an initial deposit of $2,000,000. During the 2018/19 Mid-Year Budget the Council increased this amount by $4,540,000 for a total available balance of $6,540,000. PENSION TRUST The next steps in stabilizing the unfunded pension liability is to establish and annually fund a pension trust designed to address future long-term pension obligations. The PARS Pension Rate Stabilization Program (PRSP) is a Section 115 irrevocable trust designed for agencies to prefund rising pension costs and address pension liabilities. The program was established as a multiple employer trust so that public agencies, regardless of size, can join the program to receive the necessary economies of scale to keep administrative fees low and avoid setup costs. This program can mitigate long-term pension investment volatility, while at the same time providing employers with greater local control of assets and investment flexibility to create a more actuarially sound retirement system. The PRSP trust offers the following benefits: • Participating agencies maintain oversight of investment management and control over the risk tolerance level of the portfolio • PARS Trust allows for greater investment flexibility and risk diversification compared to more limited returns the City can achieve under state law and the City’s Investment Policy • Assets can be accessed to offset unexpected rate increases (rate stabilization) or be used as a rainy-day fund to pay pension obligations during periods when revenues are impaired based on economic conditions • Potential to improve an agency’s bond rating (currently AA) • Addresses pension liabilities for financial reporting • Flexibility to access trust assets at any time to pay employer’s pension obligation • Acts as a reserve fund to pay for increasing annual pension contributions. • The HighMark Capital portfolio, used by PARS, generated returns between 3.35% and 8.47% over the past five years, depending on risk tolerance level. To date, over 180 public agencies in California have adopted the PARS pension trust program, of which 86 are cities. ALTERNATIVES The Financial Advisory Commission may request additional information or not approve staff recommendation. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING: February 13, 2019 STAFF REPORT AGENDA TITLE: DISCUSS 2019 COMMUNITY WORKSHOP AND 2019/20 BUDGET PROCESS RECOMMENDATION Discuss the 2019 Community Workshop and 2019/20 budget process. EXECUTIVE SUMMARY • Approximately 88 participants attended the 2019 Community Workshop. • A budget timeline ensures the budget is adopted prior to June 30th. • The Financial Advisory Commission (FAC) oversees Measure G sales tax revenue expenditures. FISCAL IMPACT - None BACKGROUND/ANALYSIS Annually the City hosts a community workshop to gather input for the upcoming budget cycle. This year’s workshop was held on Saturday, January 12, 2019 from 9:00am to 12:00pm. Approximately 88 participants partook in a timeline exercise, reviewed the sacred values of the City and 2017/18 accomplishments, including 2018/19 launched projects. An update on City demographics was also provided before the trends and areas of opportunity exercise. The annual budget process is approximately six months from January to June of each year. Multiple public meetings are held to garner community input before the final budget is presented for adoption. The FAC is a vital part of the budget process and oversee nearly $10,000,000 of annual revenue appropriations from Measure G sales tax. A timeline ensures the annual budget is adopted by June 30 of each year. ALTERNATIVES STUDY SESSION ITEM NO. 1 The Commission may request further information regarding the budget process. Per State law, the City must adopt a budget by June 30 of each year. Prepared by: Karla Campos, Finance Director Attachment: 1. 2019 Community Workshop Agenda and Handouts 2. 2019/20 Budget Timeline City of La Quinta 2019 Community Workshop January 12, 2019; 9 am – 12 pm “Building Our Community” Location: Wellness Center 9:00 – 9:15 Call to Order / Roll Call / Pledge / Year 6 / Mayor Evans Purpose of Workshop / Public Comment 9:15 – 9:25 Agenda / Introductions: Name, Role, Years Living in LQ C. Henson, et al 9:25 – 9:40 Accomplished the Last 10 years in La Quinta – timeline exercise All 9:40 – 9:50 What do you all notice about last 10 years? C. Henson, et al 9:50 – 9:55 Confirm Sacred Values (on paper around the room) Mayor Evans 9:55 – 10:15 Financial Overview K. Campos  5 & 10-year Revenue & Expenditure Picture  Measure G  Reserve 10:15 – 10:30 FY17-18 Accomplishments F. Spevacek 10:30 – 10:45 BREAK 10:45 – 11:00 La Quinta Demographics / U.S. City Trends C. Escobedo / D. Castro 11:00 – 11:20 Apply U.S. Trends to LQ / Areas of Opportunity Table Exercise 1. Choose your top 3 trends to apply in La Quinta; in order 2. Notice the areas of opportunity. 3. Where would you put a project – on your map? 4. Choose somebody to present back 11:20 – 11:50 Table Report-out – 6 tables (5 min each) Each Table  Share top 3 trends, in order, and why?  Where did you place projects on the map?  Clarifying questions / Considerations? 11:50 – 11:55 Final Comment Council Members 11:55 – 12:00 Appreciate and/or Learned Today All Attendees 12:00 Adjourn to Old Town for a Beer Mayor Evans City of La Quinta As of January 11, 2019 Actual Growth Adjusted Budget 2019/20 to 2028/29 2017/18 Projections 2018/19 * 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL 1. Cash Receipts Sales Tax - Measure G ᵃ 9,967,657$ 9,345,000$ 9,438,450$ 9,532,835$ 9,628,163$ 9,724,444$ 9,821,689$ 9,919,906$ 10,019,105$ 10,119,296$ 10,220,489$ ###########98,747,070$ Sales Tax - Bradley Burns 8,989,328 1% 8,900,000 8,989,000 9,078,890 9,169,679 9,261,376 9,353,989 9,447,529 9,542,005 9,637,425 9,733,799 9,831,137 94,044,829 Transient Occupancy Tax 9,843,256 2% 9,820,000 10,016,400 10,216,728 10,421,063 10,629,484 10,842,073 11,058,915 11,280,093 11,505,695 11,735,809 11,970,525 109,676,785 Property Tax 8,834,935 2% 9,161,000 9,344,220 9,531,104 9,721,726 9,916,161 10,114,484 10,316,774 10,523,109 10,733,572 10,948,243 11,167,208 102,316,602 Fire Service Property Tax 7,052,080 2% 7,057,600 7,198,752 7,342,727 7,489,582 7,639,373 7,792,161 7,948,004 8,106,964 8,269,103 8,434,485 8,603,175 78,824,326 Fire Property Tax Reserves ᵇ - (50,000) (193,152) (344,853) (505,502) (675,513) (855,321) (1,045,378) (1,246,153) (1,458,138) (1,681,846) (1,917,809) (9,923,665) Motor Vehicle In-Lieu 3,941,348 2% 4,078,000 4,159,560 4,242,751 4,327,606 4,414,158 4,502,442 4,592,490 4,684,340 4,778,027 4,873,587 4,971,059 45,546,021 Other Revenue/Intergovernmental 2,130,695 1% 1,133,200 1,144,532 1,155,977 1,167,537 1,179,212 1,191,005 1,202,915 1,214,944 1,227,093 1,239,364 1,251,758 11,974,337 Franchise Fees 1,821,007 1% 1,667,000 1,683,670 1,700,507 1,717,512 1,734,687 1,752,034 1,769,554 1,787,250 1,805,122 1,823,173 1,841,405 17,614,913 Charges for Services 1,279,869 1% 1,018,200 1,028,382 1,038,666 1,049,052 1,059,543 1,070,138 1,080,840 1,091,648 1,102,565 1,113,590 1,124,726 10,759,151 Development Related Permits 925,238 1% 756,200 763,762 771,400 779,114 786,905 794,774 802,722 810,749 818,856 827,045 835,315 7,990,640 Document Transfer Tax 718,472 1% 550,000 555,500 561,055 566,666 572,332 578,056 583,836 589,674 595,571 601,527 607,542 5,811,759 Business Licenses/Permits 469,582 1% 457,700 462,277 466,900 471,569 476,284 481,047 485,858 490,716 495,624 500,580 505,586 4,836,440 Fines and Assessments 375,390 1% 275,500 278,255 281,038 283,848 286,686 289,553 292,449 295,373 298,327 301,310 304,323 2,911,163 SilverRock Resort Net Revenue ᶜ 531,400 1,260,000 2,500,000 2,960,000 2,842,000 3,222,000 3,540,000 3,575,400 20,430,800 Carryover Funding from Prior Year 7,183,315 - 2. Total Revenue $56,348,857 $61,352,715 $54,869,608 $55,575,724 $56,819,014 $58,265,133 $60,228,123 $61,416,413 $62,031,818 $63,150,137 $64,211,157 $64,994,044 $601,561,172 3. Cash Paid Out Police Services Contract ᵈ 15,083,365 8%17,019,000 18,380,520 19,850,962 21,439,039 23,154,162 25,006,495 27,007,014 29,167,575 31,500,981 34,021,060 36,742,745 266,270,551 Fire Service Contract ᵈ 6,531,244 4%7,107,600 7,391,904 7,687,580 7,995,083 8,314,887 8,647,482 8,993,381 9,353,117 9,727,241 10,116,331 10,520,984 88,747,991 Salaries (Full-Time Employees) 5,268,266 3%6,009,100 6,189,373 6,375,054 6,566,306 6,763,295 6,966,194 7,175,180 7,390,435 7,612,148 7,840,513 8,075,728 70,954,225 Maintenance & Operations ᵉ 4,081,864 2%6,137,100 6,259,842 6,385,039 6,512,740 6,642,994 6,775,854 6,911,371 7,049,599 7,190,591 7,334,403 7,481,091 68,543,523 Capital Expenses ᶠ 3,467,879 9,679,465 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 1,552,000 15,520,000 Capital Expenses from Measure G 837,094 4,596,113 3,731,561 3,859,103 3,764,599 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 32,355,263 Other Contract Services 2,973,004 2%3,788,950 3,864,729 3,942,024 4,020,864 4,101,281 4,183,307 4,266,973 4,352,313 4,439,359 4,528,146 4,618,709 42,317,704 Transfers Out ᶢ 1,519,594 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 1,131,000 11,310,000 Employee Medical Insurance Costs 1,065,177 3%1,602,000 1,650,060 1,699,562 1,750,549 1,803,065 1,857,157 1,912,872 1,970,258 2,029,366 2,090,247 2,152,954 18,916,089 Other Personnel Costs 729,971 2%895,452 913,361 931,628 950,261 969,266 988,651 1,008,424 1,028,593 1,049,165 1,070,148 1,091,551 10,001,049 PERS Unfunded Pension Liability ͪ 544,449 724,348 859,277 964,300 1,091,700 1,197,200 1,259,600 1,306,000 1,332,120 1,358,762 1,385,938 1,413,656 12,168,553 PERS Normal Payroll Costs 346,329 2%530,000 540,600 551,412.00 562,440 573,689 585,163 596,866 608,803 620,979 633,399 646,067 5,919,419 Salaries (Part-Time/Temporary) 244,140 2%364,300 371,586 379,018 386,598 394,330 402,217 410,261 418,466 426,836 435,372 444,080 4,068,763 1996 Bond Debt Service/OPEB Trust 2,194,674 671,600 Multi-Year Project Carryovers 7,183,315 4. Total Operational Expenses $52,070,365 $60,256,028 $52,835,813 $55,308,681 $57,723,178 $59,597,169 $62,355,120 $65,271,343 $68,354,279 $71,638,428 $75,138,556 $78,870,564 $647,093,131 5. Yearly Operating Cash Position (2 minus 4) 4,278,492 1,096,687 2,033,795 267,043 (904,164) (1,332,036) (2,126,996) (3,854,929) (6,322,461) (8,488,291) (10,927,399) (13,876,520) (45,531,959) 11. RDA Loan Repayment Repayment based on Last & Final ROPS 2,899,296 2,490,453 2,540,262 2,591,066 2,642,888 2,695,746 2,749,661 2,804,654 2,860,747 2,917,962 2,976,321 3,035,847 27,815,154 12. Cash Position After RDA Repayment (10 plus 11)7,177,788$ 3,587,140$ 4,574,057$ 2,858,109$ 1,738,724$ 1,363,710$ 622,665$ (1,050,275)$ (3,461,714)$ (5,570,329)$ (7,951,078)$ (10,840,673)$ (17,716,805)$ RDA LOANRDA loan repayments end in 2029/30. Additional revenue totals $559,839. OPERATING BUDGET NOTES: a - Measure G sales tax effective April 1, 2017 is projected to be 105% of Bradley Burns sales tax collected. b - Fire Property Tax Reserve account balance as of June 30, 2018 is $9,754,327. These funds are held in trust by the County of Riverside and restricted for fire services. c - SilverRock Resort Net Revenue includes revenue derived from sales tax, property tax, transient occupancy tax and development fees. d - Police and Fire services are provided by the County of Riverside and subject to the County's annual budget and contractual obligations. e - Maintenance and operations includes utilities and internal services charges. f - Ongoing capital expense projections include minimum capital funding required for street and sidewalk improvements to secure Measure A and Gas Tax funding (both restricted for road improvements). g - Transfers Out support the Gas Tax Fund for street improvements, the Landscape and Lighting District, and SilverRock golf course. In 2017/18 $300,000 was transfered to the Public Safety Fund and another $200,000 will be transfered in 2018/19. h - PERS unfunded pension liability projections are based on CalPERS actuarial valuations as of June 30, 2017. * Adjusted 2018/19 Budget includes carryovers for multi-year capital projects ($4,996,815) and operational carryovers ($2,186,500). The adjusted budget also includes propsed mid-year budget adjustments for revenues and expenditures. GENERAL FUND FINANCIAL PROJECTIONS OPERATING BUDGETThe Adjusted Budget for 2018/19 includes anticipated mid-year changes and multi-year capital and operating carryovers. Revenue projections are based on current economic conditions and historical trends. All assumptions include positive growth with no economic downturns. Expenditure projections are based on current operations, regulatory requirements, and previously approved and anticipated increases. Measure G reserves projected for June 30, 2019 are $6,968,857 City, Land Use and Planning Trends 1) Experiential Retail/Entertainment – retail and entertainment combined; interactive, immersive unique in-store experiences. 2) Bricks & Clicks – retailer with online identity as well as a brick and mortar presence. Selling cars online yet having a physical showroom. 3) Complete Streets – design improvements to streets that cater not just to cars but to other modes of mobility: bikes, transit, golf carts, pedestrians. 4) Lifestyle Residential Communities- all types residential to include amenities, conveniences, and social engagement. Recreational activities; family activities; health and wellness. 5) Market/Food Halls - mix of local artisan restaurants and shops and boutiques; small local businesses, with bars, music and entertainment. 6) Affordable Mid-Market Homes - starter homes and affordable rental units for young adults, to include amenities, social gathering and for families. 7) Ridesharing, Alternative Power (Electric), and Self-Driving Vehicles – they’re here, they’re coming. 8) Net-Zero Energy Standard/Smart Home and Living – buildings and homes that generate all their own power through on-site renewable sources, i.e., solar, wind, graywater. Control systems and energy management systems. 9) Mixed Use Development – blending residential, commercial, cultural, institutional, and/or industrial uses in an area. 10) Smart Engagement & Connected Experience – New technologies to engage and connect with digital and physical experiences. Deployment of 5G and citywide broadband infrastructure. 11) Simulated Reality – The power of augmented and virtual reality to enhance surroundings and built environment. 12) Cannabis – it’s around us and will continue to shape the region. 13) Smart Industrial – Facilities to manufacture technology and light industrial. 14) Experiential Art – small and large-scale displays of art or exhibitions 15) Community-wide Events – arts, music, sports, cultural, and food and beverage festivals. Top Picks 1) Experiential Retail/Entertainment – retail and entertainment combined; interactive, immersive unique in-store experiences. RED 3) Complete Streets – design improvements to streets that cater not just to cars but to other modes of mobility: bikes, transit, golf carts, pedestrians. ORANGE 4) Lifestyle Residential Communities- all types residential to include amenities, conveniences, and social engagement. Recreational activities; family activities; health and wellness. YELLOW 5) Market/Food Halls - mix of local artisan restaurants and shops and boutiques; small local businesses, with bars, music and entertainment. BLUE 8) Net-Zero Energy Standard/Smart Home and Living - building development that generates all its own power through on-site renewable sources, i.e., solar, wind, graywater. Control systems and energy management systems. GREEN 10) Smart Engagement & Connected Experience – New technologies to engage and connect with digital and physical experiences. Deployment of 5G and citywide broadband infrastructure. BLACK OTHER _______________________________________ WHITE 2 0 1 9 C o m m u n i t y W o r k s h o p 1 .1 2 .1 9 W e l l n e s s C e n t e r B u i l d i n g O u r C o m m u n i t y D a t e : S a t u r d a y , J a n u a r y 1 2 , 2 0 1 9 T i m e : 9 a .m . - 1 2 p .m . L o c a t i o n : L a Q u i n t a W e l l n e s s C e n t e r 7 8 4 5 0 A v e n i d a L a F o n d a , L a Q u i n t a A p p r o x i m a t e N u m b e r o f P a r t i c i p a n t s : 8 8 C o u n c i l M e m b e r s 5 (5 %) C i t y S t a f f 2 1 (2 3 %) C o m m i s s i o n e r s 1 3 (1 4 %) R e s i d e n t s 4 8 (5 4 %) T h e m e : B u i l d i n g O u r C o m m u n i t y - L a Q u i n t a 's P a s t , P r e s e n t , a n d F u t u r e ! T i m e l i n e E x e r c i s e E a c h t a b l e g r o u p h a d a n o p p o r t u n i t y t o s h a r e t h e C i t y 's a c c o m p l i s h m e n t s a n d a r e a s f o r i m p r o v e m e n t o v e r t h e l a s t 1 0 y e a r s , f r o m 2 0 0 8 t o 2 0 1 8 . L a Q u i n t a 's S a c r e d V a l u e s W h y W e L o v e & L i v e i n L a Q u i n t a H e a l t h & W e l l n e s s H i g h Q u a l i t y A e s t h e t i c s V i b r a n t & S a f e C o m m u n i t y V i s u a l l y B e a u t i f u l C i t y C u l t u r a l D i v e r s i t y F i s c a l R e s p o n s i b i l i t y & S t a b i l i t y 2 0 1 7 /1 8 C o m p l e t e d P r o j e c t s & A c c o m p l i s h m e n t s W h y W e L o v e & L i v e i n L a Q u i n t a 2 0 1 8 /1 9 L a u n c h e d P r o j e c t s L a Q u i n t a 's C i t y w i d e D e m o g r a p h i c s P o p u l a t i o n i n c r e a s e d t o o v e r 4 0 ,0 0 0 M e d i a n a g e i s 4 6 .4 y e a r s I n c r e a s e i n n u m b e r o f p e o p l e o f H i s p a n i c /L a t i n o h e r i t a g e M e d i a n i n c o m e i s $7 6 ,0 0 0 H o u s i n g u n i t s a r e u p a t 2 4 ,5 0 0 I n c r e a s e i n p o p u l a t i o n o f p e o p l e 2 5 y e a r s a n d o l d e r I n c r e a s e i n n u m b e r o f p e o p l e w i t h G r a d u a t e o r p r o f e s s i o n a l d e g r e e s T o p U .S . T r e n d s a n d A r e a s o f O p p o r t u n i t y i n L a Q u i n t a 1 . E x p e r i e n c e R e t a i l /E n t e r t a i n m e n t 2 . B r i c k s & C l i c k s 3 . C o m p l e t e S t r e e t s 4 . L i f e s t y l e R e s i d e n t i a l C o m m u n i t i e s 5 . M a r k e t /F o o d H a l l s 6 . A f f o r d a b l e M i d -M a r k e t H o m e s 7 . R i d e s h a r i n g , A l t e r n a t i v e P o w e r (E l e c t r i c ), a n d S e l f -D r i v i n g V e h i c l e s 8 . N e t -Z e r o E n e r g y S t a n d a r d /S m a r t H o m e & L i v i n g 9 . M i x e d U s e D e v e l o p m e n t 1 0 . S m a r t E n g a g e m e n t & C o n n e c t e d E x p e r i e n c e 1 1 . S i m u l a t e d R e a l i t y 1 2 . C a n n a b i s 1 3 . S m a r t I n d u s t r i a l 1 4 . E x p e r i e n c e A r t 1 5 . C o m m u n i t y -w i d e E v e n t s 1 6 . O t h e r - A t t e n d e e R e c o m m e n d a t i o n s V o t e d - T o p 6 T r e n d s f o r L a Q u i n t a P a r t i c i p a n t s w e r e t e a m e d i n t o 1 0 g r o u p s a n d a s k e d t o r a n k t h e t o p t r e n d s a n d i d e n t i f y L a Q u i n t a 's p r i o r i t i e s 1 . E x p e r i e n c e R e t a i l /E n t e r t a i n m e n t 2 . M a r k e t /F o o d H a l l s 3 . N e t -Z e r o E n e r g y S t a n d a r d /S m a r t H o m e & L i v i n g 4 . S m a r t E n g a g e m e n t & C o n n e c t e d E x p e r i e n c e 5 . C o m p l e t e S t r e e t s 6 . L i f e s t y l e R e s i d e n t i a l C o m m u n i t i e s City of La Quinta FY 2019-20 1/12/2019 Annual Community Workshop 2/5/2019 City Council Meeting - FY 2018/19 Mid-Year Budget Report 2/13/2019 FAC meeting, budget timeline and CIP overview presented 2/19/2019 City Council Meeting 3/5/2019 City Council Meeting 3/13/2019 Housing Commission Meeting - FY 2018/19 Mid-Year Update 3/19/2019 City Council Meeting - CIP Budget Presentation #1 3/20/2019 FAC Special Meeting - Proposed CIP Budget Presentation #1 4/2/2019 City Council Meeting - Possible CIP Budget Presentation #2 4/10/2019 FAC Meeting - Proposed CIP Budget Presentation #2 4/16/2019 City Council Meeting, Adopt CIP Budget Plan 5/7/2019 City Council Meeting - Budget Study Session #1 - (General Fund focus) 5/15/2019 FAC Meeting - Proposed General Fund and CIP Budgets 5/21/2019 City Council Meeting - Budget Study Session #2 - (General Fund, Enterprise, and Special Revenue Funds) 6/4/2019 City Counicl Meeting - Budget Study Session #3 - (All Appropriations) 6/4/2019 Housing Authority Budget Study Session 6/5/2019 Originally 6/12/19 FAC Meeting - Final review of proposed Measure G uses 6/12/2019 Housing Commission Meeting 6/18/2019 City Council Meeting - Adopt Operating and CIP budget 6/18/2019 Housing Authority Adopt Budget CIP = Capital Improvement Project FAC = Financial Advisory Commission FY = Fiscal Year FY 2019/20 Budget Timeline PUBLIC MEETING DATES City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Financial Advisory Commissioners FROM: Jessica Delgado, Management Assistant DATE: February 13, 2019 SUBJECT: MEASURE G – TRANSACTION AND USE TAX – CITY WEB PAGE UPDATE The Finance Department has updated its departmental website content. Updates included the following: •Removing outdated information from 2015/16 when the Measure G Sales Tax measure was being proposed •Updating Frequently Asked Questions for Measure G Sales Tax •Adding Measure G Compliance Reports •Adding 2019/20 Budget public meeting dates •Adding Budget-at-a-Glance brochure for 2018/19 •Adding the La Quinta Budget video •Adding the 2017/18 Comprehensive Annual Financial Report •Adding upcoming FAC meeting dates through June 30, 2019 •Adding a link to the 2018/19 Investment Policy These updates provide current relevant information in a digestible manner using multiple formats (detailed, summary, video, rotating content). DEPARTMENTAL REPORT ITEM NO. 1 City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING DEPARTMENT REPORT TO: Financial Advisory Commissioners FROM: Rosemary Hallick, Financial Services Analyst DATE: February 13, 2019 SUBJECT: THIRD QUARTER 2018 (JULY – SEPTEMBER 2018) SALES TAX UPDATE FOR THE CITY OF LA QUINTA As previously reported, the State had evaluated overall operations of the Board of Equalization (BOE), which resulted in the establishment of the California Department of Tax and Fee Administration (now handles most taxes and fees formerly collected by the BOE) in July 2017, and the implementation of a new automated system for tax reporting in May 2018. Due to the significance of the changes, the administration had fallen behind in processing tax returns and as a consequence some remittances are being reported in a quarter subsequent to when they were generated. The State had issued guidance regarding the backlog of processing tax returns, and it currently appears as though they have worked through the majority of the outstanding returns. The attached report was prepared by sales tax consultants HdL Companies as an update of sales tax receipts for second quarter sales from July to September 2018. Sales Tax Update • As reported in the second quarter of 2018, sales by major business groups showed mixed results in comparison to the second quarter of 2017, with many major sectors down year over year, which was a direct result of the backlog in processing that is noted above. • As a consequence, major business sectors in the third quarter of 2018 appear to have had significant increases over 2017. This is a result of both the second and third quarter returns being processed in the same quarter for many businesses. • The City’s sales-per-capita was higher than both the county and state averages. • General consumer goods (such as department stores) and restaurants/hotels made up 57% of sales tax revenue during this quarter, based on the unadjusted numbers. DEPARTMENTAL REPORT ITEM NO. 2 • La Quinta’s overall adjusted sales tax receipts for major industry groups increased 6.8%, which compares to Riverside County at 6.3% and Southern California at 4.3%. Measure G Update • Measure G transaction taxes continue to come in above our conservative estimates; the budget was adjusted at mid-year (City Council 2/5/2019). • General consumer goods (such as department stores) and restaurants/hotels made up 55% of transaction tax revenue during this quarter, a similar share to sales taxes. • The autos and transportation sector made up 17% of transaction tax revenue as opposed to only 9% of sales tax revenue. • Our top 25 transactions tax producers predominately consisted of businesses located in La Quinta, however there were several businesses located outside of City limits that made the top 25. The City continuously monitors local development, economic conditions, impacts on travel and trade, and legislative and judicial news for any potential changes to sales tax collections. City staff will continue to monitor Measure G activity, as well as the projections provided by our consulting partners, to establish baselines for future budgeting purposes. Attachment 1: City of La Quinta Sales Tax Update HAND OUTS FAC MEETING FEBRUARY 13, 2019 Establish: Determine your Strategic Asset Allocation StrategyEach Investment Objective reflects the associated PARS Diversified Portfolio as of 12/31/2018. A client ‘s portfolio construction may vary depending on the client's investment needs, objectives, and restrictions as well as the prevailing market conditions at the time of investment. Moderately ConservativeModerateExpected Standard Deviation (Volatility)Expected ReturnBalancedCapital AppreciationEfficient frontier of portfolios with varying ranges of equities and fixed incomeConservativeEquityFixed Income CashConservative 5‐20% 60‐95% 0‐20%Moderately Conservative 20‐40% 50‐80% 0‐20%Moderate 40‐60% 40‐60% 0‐20%Balanced 50‐70% 30‐50% 0‐20%Capital Appreciation 65‐85% 10‐30% 0‐20%1 City of la quinta ▎2HighMark Capital Management ReturnsEquity (%) 1 Year 3 Years 5 Years 10 YearsCapital Appreciation65-85%-5.82% 6.15% 4.81% 9.11%Balanced50-70%-4.88% 5.46% 4.20% 8.38%Moderate40-60%-4.03% 4.96% 3.95% 7.78%ModeratelyConservative20-40%-2.60% 3.84% 3.24% 6.41%Conservative5-20%-1.35% 3.13% 2.70% 5.13%* Past performance does not guarantee future resultsACTIVE RETURNS AS OF DECEMBER 31, 2018 POWER POINTS FAC MEETING February 13, 2019 2/13/2019 1 Financial Advisory Commission Meeting February 13, 2019 Financial Advisory Commission Meeting February 13, 2019 S1 – 2019/20 Budget 2/13/2019 2 2019 Community Workshop Held on January 12, 2019 – 13 Commissioners Last 10 years in La Quinta Sacred values confirmed Financial Overview FY 2017/18 Accomplishments Demographics U.S. Trends / Areas of Opportunity 2019/20 Budget Timeline Today CIP Project Status Update 3/20/19 CIP Budget Presentation #1 4/10/19 CIP Budget Presentation #2, Preliminary General Fund Budget 4/16/19 CIP Budget Adopted 5/15/19 General Fund Budget 6/5/19 General Fund Budget 6/18/19 Adopted Operating & CIP Budget 2/13/2019 3 Current Project Updates Projects in design: 15 Projects in construction: 3 Completed projects: 2 Measure G funded projects: 5 CIP Story Map STORY MAP CIP Projects: Design Phase Dune Palms Road Street Imps (2009‐04) Construction anticipated in May 2019 Total Funding: $2,483,000.00 Budget remaining: $1,323,745.21 2/13/2019 4 CIP Projects: Design Phase Dune Palms Road Bridge Imps (2011‐05) 65% Design Plans Total Funding: $17,510,603.00 Budget remaining: $16,153,084.27 Surface Transportation Grant Funding: $15,501,603.00 SilverRock Way Infrastructure Imps (2014‐17) PS&E under final review Revenue Source is 2002 Bond Proceeds Total Funding: $5,733,021.40 Budget remaining: $5,328,739.01 CIP Projects: Design Phase La Quinta Village Complete Streets (2015‐03) Construction anticipated June 2019 (Phase I) Current Budget Approved for Design/ROW: $2,386,442.00 Budget remaining: $1,183,449.07 TOTAL PROJECT BUDGET: $13,587,986 State ATP Grant: $7,313,100 2/13/2019 5 La Quinta Village Complete Streets (2015‐03) Anticipated Construction Schedule CIP Projects: Design Phase Civic Center Campus Lake Irrigation (2016‐06) CVWD currently constructing irrigation line Total Funding: $675,270.00 Budget remaining: $526,080.40 HSIP Intersection Imps Fiber Upgrades (2016‐02) Construction anticipated summer 2019 Total Funding: $2,001,000.00 Budget remaining: $1,872,205.31 HSIP Grant Funding: $1,971,000.00 2/13/2019 6 CIP Projects: Design Phase North La Quinta Landscape Renovation (2016‐03) Highlands Project currently in design Quinterra and Adams Park Basin Project ‐ completed January 2019 Total Funding: $4,682,189.00 Budget remaining: $2,991,264.61 Measure G Funding: $3,932,189.00 CIP Projects: Design Phase Citywide Drainage Enhancements (2015‐12) Washington Street, Calle Tampico, Eisenhower Drive and Dune Palms Drive drainage enhancements Total Funding: $8,384,279.00 Budget remaining: $4,402,830.16 Measure G Funding: $3,573,873.00 Eisenhower Retention Basin Landscape Imps (2017‐04) PS&E under final review Total Funding: $750,000.00 Budget remaining: $747,615.00 Measure G Funding: $750,000.00 2/13/2019 7 CIP Projects: Design Phase Avenue 53 and Jefferson Roundabout (2017‐09) 65% Design plans complete Total Funding: $2,027,328.00 Budget remaining: $1,958,644.63 CIP Projects: Design Phase La Quinta X Park (2015‐09) Community outreach meeting February 11, 2019 for feedback on site plan & design Total Funding: $3,501,639.00 Budget remaining: $3,308,436.33 2/13/2019 8 CIP Projects: Design Phase Cove Public Restroom (2018‐01) Plans in design Total Funding: $456,000.00 Budget remaining: $454,840.00 CIP Projects: Design Phase Jefferson Street Sidewalk Gap Closure (2017‐06) PS&E to City Council for approval on February 19, 2019 Total Funding: $180,000.00 Budget remaining: $152,415.00 SB821 Grant Funding: $90,000.00 Highway 111 Sidewalk Imps (2018‐03) Design phase in progress Total Funding: $500,000.00 Budget remaining: $498,200.00 2/13/2019 9 CIP Projects: Design Phase SilverRock Event Site (2016‐08) PS&E approved on January 15, 2019 Total Funding: $6,000,000.00 Budget remaining: $5,674,204.82 Measure G Reserve Funding: $1,300,000.00 CIP Projects: Construction Phase Madison Street Widening Project (2009‐02) Indio lead agency Phase III reimbursement agreement forthcoming Total Funding: $2,914,993.80 Budget remaining: $2,129,536.61 2/13/2019 10 CIP Projects: Construction Phase HSIP Intersection Improvements (2016‐01) Pre‐construction meeting February 12, 2019 Total Funding: $1,260,400.00 Budget Remaining: $1,193,809.56 HSIP Grant Funding: $1,134,300.00 CIP Projects: Construction Phase FY17/18 PMP Zone 2 – Slurry Seal and Striping Improvements (2017‐27) Completing final construction Total Funding: $830,470.00 Budget Remaining: $209,750.00 2/13/2019 11 CIP Projects: Completed City Hall Miscellaneous ADA Imps (2017‐03) Total Funding: $281,138.00 Final Budget: $268,383.93 CIP Projects: Completed La Quinta High School ADA Imps (2017‐05) Total Funding: $259,000.00 Final Budget: $235,808.06 SB821 Grant Funding: $109,500 2/13/2019 12 CIP Projects: Measure G North La Quinta Landscape Renovation Imps La Quinta Village Complete Streets SilverRock Event Site Citywide Drainage Enhancements Eisenhower Retention Basin Landscape Imps Financial Advisory Commission Meeting February 13, 2019 B1 – 2017/18 CAFR 2/13/2019 13 Category General Fund All Other Funds Total Gov’t Funds Non‐spendable $ 52,976,449 $ ‐ $ 52,976,449 Restricted ‐ 39,263,604 39,263,604 Committed 29,726,500 ‐ 29,726,500 Assigned 19,921,112 ‐ 19,921,112 Unassigned 19,199,506 (11,405,877) 7,793,629 Total $ 121,823,567 $ 27,857,727 $ 149,681,294 Fire Tax Credit $ 9,754,327 Capital Projects 4,996,815 Measure G 5,169,970 GOVERNMENTAL FUND BALANCES •Housing Authority •Civic Center Fund •Capital Improvement Fund •19 Special Revenue Funds Non‐Spendable & Negative Unassigned From Fund Due to General Fund Civic Center $ 7,103,053 Street Facility DIF 1,891,472 Fire DIF 490,843 SilverRock 5,468,718 Total Receivable $ 14,954,085 Category Balance Prepaid Costs $ 90,657 Land Held for Resale 8,320,000 Advances from Other Funds 14,954,085 Due from Other Gov’t (RDA) 29,611,707 Total Non‐Spendable $ 52,976,449 •Advances from Other Funds •Reviewing Spring 2019 •RDA Loan Repayment •80% General Fund •Final Payment in 2030 2/13/2019 14 Committed Reserves Reserve Category Current Funding Target Unfunded Natural Disaster $ 7,400,000 $10,000,000 $ 2,600,000 Economic Disaster (NEW) 8,140,000 11,000,000 2,860,000 Cash Flows 5,000,000 5,000,000 ‐ Capital Replacement (NEW) 5,000,000 10,000,000 5,000,000 Pension Trust (NEW) 2,000,000 10,000,000 8,000,000 Operating Carryovers 2,186,500 None ‐ Total Committed Reserves $ 29,726,500 $ 46,000,000 $ 18,460,000 •New Reserve Policy •Funded with Unassigned Reserves (currently $19,199,506) •Adjusted with Mid‐Year Budget Update Citywide Drainage $1,443,000 Pavement Management Plan $1,091,000 Madison Street Median Landscape $909,000 Eisenhower Drive at Montezuma Roundabout $650,000 Landscape Renovations $641,000 Major Infrastructure Improvements 2/13/2019 15 Description Governmental Business Type Total Land $ 66,594,534 $ 39,712,955 $ 106,307,489 Buildings & Improvements 40,659,592 3,556,822 44,216,414 Equipment & Furniture 1,012,039 316,012 1,328,141 Vehicles 1,000,246 ‐ 1,000,246 Infrastructure 387,495,409 ‐ 387,495,409 Construction in Progress 14,151,774 ‐ 14,151,774 Total $ 510,913,594 $ 43,585,879 $ 554,499,473 Current Yr. Depreciation $ 9,209,534 $ 250,989 $ 9,460,523 Capital Assets Debt Type Balance at 6‐30‐18 Pay Off Date Capital Leases $ 667,035 2 – 5 Years Compensated Absences 823,842 Land Acquisition Note Payable (Eisenhower Drive) 1,125,000 March 2019 Revenue Bonds 650,000 October 2018 Total $ 3,265,877 Long‐Term Debt •Total Decreased by $ 3,518,000 •Capital Leases Include ‐ Fleet Vehicles, Copiers & Computers 2/13/2019 16 Thank You Financial Advisory Commission Meeting February 13, 2019 B2 – 2017/18 Measure G Compliance Report 2/13/2019 17 Measure G Oversight Annual Report Presented to City Council on January 15, 2019 Transaction and use sales tax Implemented on April 1, 2017 Oversight by Financial Advisory Commission Reporting period from inception to June 30, 2019 Compliance Summary Revenues 2016/17 Actual 1,462,650$ 2017/18 Actual 9,967,657 2018/19 Estimated Budget (Adjusted)* 9,345,000 TOTAL 20,775,307$ Expenditures Operational Capital Reserves 2016/17 Eisenhower Dr. Retention Basin 750,000 Measure G Reserves 2016/17 712,650 2017/18 Public Safety Fund 300,000 North La Quinta Landscape Improvements 1,802,576 Citywide Drainage Enhancements 2,407,373 La Quinta Village Road Diet Project 1,000,388 Measure G Reserves 2017/18 4,457,320 2018/19 Public Safety Fund 200,000 Public Safety Services 2,750,000 Citywide Drainage Enhancements 1,166,500 North La Quinta Landscape Improvements 2,129,613 SilverRock Event Space (Proposed)** 1,300,000 Measure G Reserves 2018/19 (Adjusted)*** 1,798,887 TOTAL 3,250,000$ 10,556,450$ 6,968,857$ MEASURE G REVENUES AND EXPENDITURES SUMMARY * Includes an anticipated 2018/19 mid-year budget adjustment to increase revenues. ** Proposed SilverRock Event Space allocation will be presented for Council consideration on 1/15/19. *** Reserves are adjusted for the anticipated revenue increase and use of funds for SilverRock Event Space. 2/13/2019 18 Revenue Actuals & Estimates Revenues 2016/17 Actual 1,462,650$ 2017/18 Actual 9,967,657 2018/19 Estimated Budget (Adjusted)* 9,345,000 TOTAL 20,775,307$ •2017/18 actuals were $367,656 over budget •2018/19 anticipated adjustment ($890,000 increase) •2017/18 actuals •Current trends •Updated forecast •Remains conservative Use of Funds 2/13/2019 19 Discussion and Questions Thank You Financial Advisory Commission Meeting February 13, 2019 B3 – 2018/19 Mid-Year Budget Report 2/13/2019 20 City Budget Outlook Reassuring Strong Measure G sales tax revenue Stable Transient Occupancy Tax revenue Expenses on target Strong fund balance General Fund Mid‐Year Adjustment Requests Revenue Expenses Property Taxes $ 422,000 Sales Taxes 890,000 Miscellaneous 60,000 Fire Services 75,000 Hotel Taxes 550,000 Finance 10,213 City Clerk 7,000 Fire Station #70 75,000 Recruiting 30,000 Code Compliance 25,000 Totals $ 1,997,000 $ 147,213 Updated revenue projections Position adjustments funded from Contingency for staffing Reducing consulting services 2/13/2019 21 Historical Full‐Time Staff Trend Currently 91 positions, 3 proposed positions New total would be 94 positions 11 fewer positions than in 2009 Other Fund Adjustments Fund Revenues Expenses Library and Museum Fund (202) - 165,200 Public Safety Fund (Fund 203) 3,000 * - JAG Fund (Fund 213) 213 Development Agreement Fund (Fund 217) 800 * Quimby Fund (Fund 220) 16,000 * Cal Recycle Fund (Fund 221) 2,500 * 60,000 Measure A Fund (Fund 223) 3,000 * - CASp Fund, AB 1379 (Fund 230) 6,000 - Transportation DIF Fund (Fund 250) 10,000 * - Parks & Recreation DIF Fund (Fund 251) 4,000 * - Facility & Fleet Fund (Fund 501) 15,000 * - Information Technology Fund (Fund 502) 12,000 - Parks Equipment Fund (Fund 503)15,000 * 70,000 SilverRock Operating Fund (Fund 601)55,000 55,000 SilverRock Reserve Fund ( Fund 602) - 55,000 CERBT OPEB Trust Fund (Fund 761) 20,000 * - TOTAL ADJUSTMENTS 162,513$ 405,200$ * Indicates revenue adjustment is limited to interest allocation. 2018/19 Mid-Year Adjustment Requests for Other Funds 2/13/2019 22 Summary of Adjustment Requests Revenues increased by $2,159,513 Expenses increased by $552,413 One position reclassification Three new full‐time positions General Fund Reserves Reserve Category Current Target Deficit Option 1 Option 2Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 7,400,000 10,000,000 2,600,000 2,600,000 1,408,451 Economic Disaster 8,140,000 11,000,000 2,860,000 2,860,000 1,549,296 Capital Replacement Reserve 5,000,000 10,000,000 5,000,000 2,500,000 2,708,559 Pension Trust Benefits 2,000,000 10,000,000 8,000,000 2,040,000 4,333,694 27,540,000 46,000,000 18,460,000 10,000,000 10,000,000 Unassigned Fund Balance 19,199,506 (10,000,000)(10,000,000) Option One: Fully fund two additional categories and partially fund remaining two. Option Two: Distribute an allocation to each category on a weighted basis, with the largest unfunded category receiving the largest amount. Balances as of June 30, 2018 Recommendation ‐ $10,000,000 from Unassigned Reserves Two options for consideration 2/13/2019 23 Reserve Category Option 1 Target Deficit Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 11,000,000 11,000,000 - Capital Re placement Reserve 7,500,000 10,000,000 2,500,000 Pension Trust Benefits 4,040,000 10,000,000 5,960,000 37,540,000 46,000,000 8,460,000 Reserve Category Option 2 Target Deficit Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 8,808,451 10,000,000 1,191,549 Economic Disaster 9,689,296 11,000,000 1,310,704 Capital Re placement Reserve 7,708,559 10,000,000 2,291,441 Pension Trust Benefits 6,333,694 10,000,000 3,666,306 37,540,000 46,000,000 8,460,000 Alter the amount allocated but use one of the two methods Request additional alternatives Not allocate additional funds to committed reservesReserve Options Option Selected Reserve Category Option 3 Target Deficit Cash Flow Reserve 5,000,000 5,000,000 - Natural Disaster Reserve 10,000,000 10,000,000 - Economic Disaster 11,000,000 11,000,000 - Capital Re placement Reserve 5,000,000 10,000,000 5,000,000 Pension Trust Benefits 6,540,000 10,000,000 3,460,000 37,540,000 46,000,000 8,460,000 Reserve Category Current Target Deficit Option 3 Cash Flow Reserve 5,000,000 5 ,000,000 - Natural Disaster Reserve 7,400,000 10 ,000,000 2,600,000 2,600,000 Economic Disaster 8,140,000 11 ,000,000 2,860,000 2,860,000 Capital Re placement Reserve 5,000,000 10 ,000,000 5,000,000 - Pension Trust Benefits 2,000,000 10 ,000,000 8,000,000 4,540,000 27,540,000 46,000,000 18,460,000 10,000,000 Unassigned Fund Balance 19,199,506 (10,000,000) New Balances 2/13/2019 24 Additional Discussions or Questions Financial Advisory Commission Meeting February 13, 2019 B4 – Approve Establishing a Pension Trust 2/13/2019 25 What is our current liability? Calculated as of June 30, 2017 reported on June 30, 2018 Adjusted annually based on current payroll and actuarial assumptions 2015 2016 2017 2018 Pensions 6,433,391 8,651,290 10,874,098 12,612,523 OPEB 741,071 813,077 1,288,598 1,380,949 Years Ended June 30, Benefits of a Trust Control over investment strategy, risk tolerance level of the portfolio (3.35% ‐ 8.47%) Greater investment flexibility and risk diversification Rainy‐day fund to pay pension obligations Potential to improve agency bond rating (AA) Addresses pension liability on financial reports 2/13/2019 26 Trust Structure and Fees PARS (Public Agency Retirement Services) HighMark Capital U.S. Bank Trust Administrator Capital Management Custodian of Funds Staff Recommendation Open Pension Trust with PARS Initial funding of $6,540,000 Include Trust in the Quarterly Treasurer’s Report Continue to send additional payments directly to PERS when funds are available Additional Trust funding shall be discussed annually with the Mid‐Year Budget Report 2/13/2019 27 Additional Discussions or Questions Financial Advisory Commission A Special Meeting will be held on March 20, 2019 Next Regular Quarterly Meeting is on May 15, 2019 2/13/2019 28